Technology Cooperation and Capacity Building - CommDev

The Oil IndustryExperienceTechnologyCooperation andCapacity BuildingContribution toAgenda 21IPIECAUNEP

ISBN 92-807-1522-4UN Sales Number: 94 III D.11.© IPIECA 1995. All rights reserved. No part of this publicationmay be reproduced, stored in a retrieval system, or transmittedin any form or by any means, electronic, mechanical,photocopying, recording or otherwise, without the priorconsent of IPIECA.●●Produced by IPIECA in cooperationwith UNEP/IE, London 1995Design and production: Words andPublications, Oxford, UKThe views expressed in this publication are not necessarilythose of IPIECA.The designations employed and the presentation of the materialin this publication do not imply the expression of any opinionwhatsoever on the part of the United Nations EnvironmentProgramme concerning the legal status of any country, territory,city or area or of its authorities, or concerning delimitation ofits frontiers or boundaries. Moreover, the views expressed donot necessarily represent the decision or the stated policy ofthe United Nations Environment Programme, nor does citing oftrade names or commercial processes constitute endorsement.●Photographs, title verso: top row, left:courtesy of Conoco; centre: courtesyof BP Exploration; right: IPIECA.Second row, left: courtesy of ENI;centre: Shell Photo Services; right:IPIECA. Centre page: courtesy of BP.Third row, left: Shell InternationalPhoto Services; centre: courtesy of ElfAtochem; right: courtesy of SaudiAramco; Bottom row, left: courtesy ofExxon (Poland); centre: courtesy of ElfAquitaine; right: courtesy of Total.

The Oil IndustryExperienceTechnologyCooperation andCapacity BuildingContribution toAgenda 21UNEPIPIECA

Spectrum of Oil andGas Industry ActivitiesExploration and Production(finding and producing oil and gas—the first steps insatisfying world energy demand)Transportation(transportation of crude oil to refineries)Research and Development(research and development of new and improved processes and productsis vital throughout the whole spectrum of activities)Refining and Storage(processing crude oil into refined products such as gasoline,diesel, fuel oil, lubricants, bitumen, solvents, fertilizers, plasticsand many other chemicals)Marketing and Distribution(distribution to industrial and municipal customers,the public and retail outlets)

Contents▼ForewordsIPIECA Chairman 2Director, Industry and Environment, UNEP 3Setting the SceneThe Earth Summit 4Key strategic issues 5Multi-stakeholder partnerships 8Goal setting and voluntary guidelines 12In summary 13InterviewsDr Nay Htun, United Nations Development Programme 7Paul Coutrier, Indonesian Ministry of the Environment 9Mohamed El-Ashry, Global Environment Facility 11Template for SuccessKey lessons learned by industry partners 14Conditions for success 14Benefits to be enjoyed 15Technology Cooperation and Capacity Building in PracticeIntroduction to the case studies 16Case Study One: Amoco in Western Siberia 18Case Study Two: BP in Colombia 20Case Study Three: Canadian Occidental in Yemen Republic 24Case Study Four: Chevron in Papua New Guinea 28Case Study Five: Elf Aquitaine in French-speaking countries 32Case Study Six: Esso in Malaysia 34Case Study Seven: Imperial Oil in northern Canada 38Case Study Eight: Mobil in Indonesia 42Case Study Nine: PT Caltex Pacific Indonesia 46Case Study Ten: Shell in Malaysia 50Case Study Eleven: Total in Senegal 54Case Study Twelve: IPIECA in the international community 58A Guide to ResourcesPeople and Organizations 62Bibliography 63

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGForeword▼Klaus KohlhaseIPIECA ChairmanThe United Nations Conference onEnvironment and Development(UNCED), held in Rio de Janeiro in1992, helped turn the spotlight onglobal technology cooperation andcapacity building. Business and industry,the creators of both wealth and newtechnology, have a key role to play inthese areas, and thus in helping theworld achieve the goals of Agenda 21.There is a universal need forefficient technologies that will helpachieve sustainable development and,in the process, eliminate poverty,improve living standards and protectthe environment.This publication is about the effortsof the oil industry to address thesechallenges in partnership withgovernments, contractors, suppliersand communities. In the pages thatfollow, some of the industry’s successstories are told.There have been many successes—and inevitably some failures. Lessonshave been learned and changes made tothe way we work with the people andinstitutions of the countries in whichwe operate.We have learned the primeimportance of direct investment bybusiness. We have also learned that thetransfer of ‘core technology’ alone isnot enough: technologies, if they are towork efficiently, must be transferredwith the human skills developed duringtheir evolution and commercial proving.It is this comprehensive approach that isnow called ‘technology cooperation andcapacity building’— which involves thedevelopment of local human resourcesand institutions to levels where thetechnologies can be successfully appliedfor the mutual benefit of the partnership.I hope all those who are, or whoare likely to become involved in thepartnerships described here, will findthis publication useful, and I lookforward to my industry making acontinued contribution towardsachieving the aims of Agenda 21.2

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… ForewordJacqueline Aloisi de Larderel,Director, Industry and Environment, UnitedNations Environment ProgrammeTechnology has played an importantrole in improving the well-being ofpeople worldwide. However, historyhas shown that technology can alsohave negative impacts on the social,environmental and economic fabric ofsociety if it is not properly managed.The capability to manage technologicalchange for the common goodincreasingly defines the gap betweenindustrialized and developing countries.Local capabilities to assess, develop,manage and apply technologies areneeded to bridge this gap, and therebyensure sustainable development.Technology cooperation is aboutensuring the transfer of skills torecipient countries to increase theircapacity to master the technology,adapt it to local conditions, improve itover time and hence generate technicalchange in the future.International trade is a significantmechanism for the transfer ofknowledge and technology. As privatesector companies make the largestcontribution to the development oftechnology, their role in technologycooperation is critically important.Similarly, as multinational companiesoperate in most countries in the world,their efforts to promote and ensureenvironmentally-sound development inthe countries where they operate is alsoof fundamental importance. Principle 3of the ICC Business Charter forSustainable Development supports this:‘To continue to improve corporatepolicies, programmes andenvironmental performance, taking intoaccount technical developments,scientific understanding, consumerneeds and community expectations,with legal regulations as a starting pointand to apply the same environmentalcriteria internationally’. UNEPacknowledges the contribution that hasbeen made by the oil and gas industry inthis regard. However, improvement isstill possible and UNEP will encouragefurther efforts along these lines.This publication highlights possibledirections based on the experience oftechnology cooperation and capacitybuilding drawn from one major businesssector—the oil and gas industry. Itplaces special emphasis on the benefitsof partnerships and it serves to show, byexample, that confrontation can move tocooperation and that partnerships canlead us along the path of sustainabledevelopment. UNEP is aware that theoil industry’s environmentalperformance requires furtherimprovement, and therefore encouragesthe spirit of continuous improvementadopted by leading companies in the oiland gas industry. Although some of theelements of the case studies in thispublication are therefore open tocriticism, we find the case studyapproach helpful in stimulating dialogueand catalyzing further action. We hopethat other industries will be encouragedto follow this example.As Elizabeth Dowdeswell, ExecutiveDirector of UNEP recently stated:‘Building sustainable consumption andproduction patterns globally is a task ofimmense complexity. It means changingthe underlying economic principles,including the relationship between theNorth and the South in a cooperativelong-term endeavour. It meansexamining our societal goals andlifestyles, injecting an ethical perspectiveto our actions. It means living with theecological limits of our planet and thesocial limits of society. It meansreducing our “footprint” on Earth’.3

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGSetting the Scene▼For more than 100 years, the oil and gasindustry has worked with the peoplesand institutions of nations around theworld to discover, develop, process andmarket oil and gas resources for mutualadvantage. Over the years, partnershipshave progressively developed toencompass the full range of activitiesnow referred to as ‘technologycooperation’ and ‘capacity building’.Partnerships have evolved from theCapacity buildingA process of constructive interactionbetween countries and the private sectordesigned to develop the capability and skillsto achieve environmentally-sound forms ofeconomic development through the use ofmodern technologies and managementsystems, a competent workforceand appropriate lawsand regulations.role in promoting the concept ofsustainable development as the way theglobal community should manage theEarth’s resources to meet the needs ofcurrent and future generations.The Conference also broadcastanother equally important message:that sustainable development of ourbiological resource base will beachieved only if all nations and allsectors of society find effective meansnarrowly-focused ones developedduring the early search for anddevelopment of crude oil resources, topartnerships that are today contributingtowards sustainable development.These may involve cooperativeagreements for exploration andproduction of oil and gas, and fortheir processing, distribution and salein the market place. The mostimportant partnerships have beensignificant contributors to manyTechnology cooperationA process of constructive interactionwith local, national and internationalpartners to select and apply appropriatetechnology systems to achieveenvironmentally-sound forms ofeconomic development.nations’ efforts to develop theirnatural resources, improve theircommunication, transport and healthservices, and create advanced nationaleducational institutions, from whichhas sprung a skilled work force,supporting industries and localentrepreneurial activity.The Earth SummitThe United Nations Conference onEnvironment and Development(UNCED) held in Rio de Janeiro inJune 1992 focused world attention onthe close links that exist between theenvironment and socio-economicdevelopment. The Summit resulted intwo Conventions (the FrameworkConvention on Climate Change and theConvention on Biological Diversity),the Rio Declaration and Agenda 21—plan of action. UNCED played a keyof working together—in partnerships.This theme of cross-sectorpartnerships is one of the centralmessages of Agenda 21. This plan ofaction gives an overview of the widerangingsocio-economic andenvironmental challenges facing theworld community and offersrecommendations for tackling them. Itplaces great emphasis on increasedcooperation between different sectorsand on strengthening the role of majorSustainable developmentis the form of development or progressthat ‘meets the needs of the presentwithout compromising the ability of futuregenerations to meet their own needs’.Gro Harlem Brundtland‘In order to achieve sustainable development,environmental protection shall constitute anintegral part of the development processand cannot be consideredin isolation from it.’Rio Declaration, Principal 44

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Setting the SceneAGENDA 21‘There is a need for favourableaccess to and transfer ofenvironmentally-soundtechnologies, in particular todeveloping countries, throughsupportive measures that promotetechnology cooperation and thatshould enable transfer of necessarytechnological know-how as well asbuilding up of economic, technicaland managerial capabilities forthe efficient use and furtherdevelopment of transferredtechnology. Technology cooperationinvolves joint efforts by enterprisesand Governments, both suppliersof technology and its recipients.Therefore, such cooperation entailsan interactive process involvinggovernment, the private sector,and research and developmentfacilities to ensure the best possibleresults from transfer oftechnology. Successful long-termpartnerships in technologycooperation necessarily requirecontinuing systematic trainingand capacity building at all levelsover an extended period of time.’Chapter 34, Agenda 21, United NationsConference on Environment andDevelopment, Rio de Janeiro, June 1992groups, which are identified as:workers and trade unions; localauthorities; the scientific andtechnology community; farmers; nongovernmentalorganizations (NGOs);indigenous people and theircommunities; women; children andyouth; and business and industry.Key strategic issuesOil, gas and coal represent about 90 percent of the commercial energy usedworldwide. Reserves of oil, gas and coalare estimated to last for at least twocenturies at today’s consumption rates.Although advances in renewable energytechnologies will continue to play a rolein determining the world’s energy mix,the global community will rely heavily onWorld total primary energy demand (growth rates per annum)growth rates (% per anum)6543210-1-2-3OECDformer Soviet Union,Central and Eastern Europethe use of fossil fuels for the foreseeablefuture. This will be particularlyimportant in developing economieswhich represent some 60 per cent ofannual growth in energy demand.In meeting this growing demand,the challenge for the petroleumindustry is to develop and provide theglobal market place with affordablepetroleum products while ensuringenvironmental quality.The activities involved have apotential impact on the environment.For upstream and downstream activities,the environmental issues that theThe graph below shows historical and projectedgrowth rates in energy demand. The data aretaken from a study in the OECD/IEA WorldEnergy Outlook.rest of world1971–92 1992–2000 2000–2010totalSource: © OECD 1995, World Energy Outlook. Reproduced by permission of OECD5

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Setting the Sceneindustry faces are numerous. Potentialimpacts include, among others: airemissions, climate change, biodiversity,marine and freshwater discharges,emergency preparedness in the event ofaccidents and oil spills, and soil andgroundwater contamination. The oil andgas industry has begun to respond tothese issues, however much remains tobe done. It should also be recognizedthat much has been achieved, and manyoil industry managements now placehigh priority on understanding andmanaging the environmental impact oftheir operations. The bibliography at theend of this report includes someexamples of guidelines and goodmanagement practices which have beenpublished to assist oil and gas industrymanagers in improving theirenvironmental performance.Industry is encouraged by anincreasing acceptance of the need toexplore new approaches toenvironmental management. It will bean active partner with governments injoint goal and standard settingexercises and it is strongly motivated toseek out and apply creative and costeffectiveapproaches to meeting newand challenging goals—outside thestrait jacket of simple end-of-pipetreatments and rigid command andcontrol strategies.The response to theseenvironmental challenges will differbetween companies and countries.Establishing new types of partnershipsand research programmes will be thekey to tackling these challenges. Forcontinued on page 8 …YORKTOWN: WORKING WITH PUBLIC POLICY ON GOAL SETTINGThe first approaches to environmentalregulations focused on control of pointsource emissions—smoke from chimneys,dirty water effluents and noisy machinery.This approach remained the preferred onefrom the 1960s to the early 1980s.Regulation in the United States, Europeand other parts of the world built on theconcept of point source emission controlwith increasing degrees of complexity andsophistication. The approach wasexpensive to implement and monitor, forboth industry and regulatory authorities.The cost effectiveness of this formof control was progressively challengedby industry and through scientificstudies which suggested that the fullanticipated environmental benefits werenot being realized because prescriptivelegislation minimized innovation andcost/benefit analysis.Faced with a further series of controlsat their Yorktown refinery (Virginia, USA),Amoco suggested to the USEnvironmental Protection Agency (EPA)that a cooperative study be made toexplore cheaper and moreenvironmentally-effective approaches tothe management of emissions (air, waterand wastes) from the refinery.The subsequent Yorktown Projectprepared a careful inventory of all sourcesof pollutants that required to be regulated.The inventory became the starting pointfor evaluating how ambient air quality,receiving water quality standards andwaste management requirements couldbest be met. The study proved effective inprioritizing sources of emissions based onthe effect their management would haveon meeting environmental quality goals. Italso highlighted the cost/benefit ofdirecting major efforts to control specific,prioritized sources as opposed to applyinguniform control standards on each andevery source.Comparing these two mechanisms,considerably less capital investment wasrequired to meet the environmentalobjectives by following the goal-settingrather than the latter prescriptiveapproach. While the EPA acknowledgesthe potential saving, regulation requiredAmoco to implement the moreexpensive solution. However, thisapproach represents a good example ofpartnership that ultimately will lead toachieving public policy objectives in amore cost-effective manner.6

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGI N T E R V I E WDr Nay HtunAssistant Administrator and Regional Director for Asia and the PacificUnited Nations Development Programme (UNDP)Dr Nay Htun is a senior UN official withthe rank of Assistant Secretary-General.There are few people in the UN whoknow as much as he does about therelationship between industry,development and the environment. Aftereight years in industry, he helped set upUNEP’s Industry and Environment Officein Paris, where he worked closely withIPIECA. During his 18-year term withUNEP, where his last position was DeputyExecutive Director, he was seconded tothe UNCED Secretariat where he helpedMaurice Strong organize the Earth Summit.He now has a senior position in UNDP,the largest technical cooperation andassistance organization in the world.‘Technology cooperation and transfer,’he says, ‘is one of the key means ofattaining sustainable development and wasone of the most important issuesaddressed by UNCED.’ Why, then, dointergovernmental debates so rarelyrecognize the important role played byindustry in technology cooperation?Dr Nay Htun is blunt. ‘Industry needsto spend more time and effort in thenegotiating processes, informing peopleabout what it has to offer, and what it hasalready offered, in technology cooperationand capacity building in developingcountries. It should open its files toindependent and reputable organizationsand scholars so that they can assess andreport on industry’s long and sustainedcontribution to technology transfer. And itshould take part in national preparatoryprocesses for important intergovernmentalmeetings, as a member of‘Industry needs to spend moretime and effort in the negotiating processes,informing people about what it has to offer,and what it has already offered, in technologycooperation and capacity building indeveloping countries.national delegations wherever possible.’Dr Nay Htun insists that more must bedone to publicize industry’s successes withtechnology cooperation. ‘Publications such asthis should be followed up by regionalseminars,’ he says, ‘in which the contents arediscussed, the procedures and methodologiesrefined, and new partnerships forged to makefurther progress.’There are, Dr Nay Htun admits, somemajor barriers to progress. ‘Industry atlarge needs to take social and culturalfactors, and gender issues, more seriouslyin its plans for technology cooperation. Itmust provide the capacity buildingneeded, the same product specificationsas in the country of origin, andtechnologies that use resources moreefficiently and are less polluting. Thepetroleum industry has experience whichit must share, as shown by the casehistories in this publication.’‘Governments need better ways ofassuring commitment and supportthroughout the project, of providingincentives for people to stay in the jobsfor which they have been trained, and ofselecting projects that contributespecifically to sustainability.’‘Technology’, adds Dr Nay Htun,‘cannot solve all the world’s problems.But, used appropriately, it can help findsolutions to many of them. Industrypossesses much of the technology andknow-how that are needed. Thepetroleum industry, in particular, hasplayed a key role in economicdevelopment almost everywhere in theworld over the past century. It should bea key partner with governments, civilsociety and international organizations inattempts to foster technologicalcooperation.’Dr Nay Htun sees industry’s role asone that has been changing, and willcontinue to do so. ‘Traditionally, industry’sjob was to build up economic capital,’ hesays. ‘Over the past two decades, it hasbegun to help conserve and buildecological capital. And now there is aneed to build social capital in thecountries in which industry operates.’‘These three types of capital should beintegrated to promote sustainabledevelopment for present and futuregenerations—a goal that industry mustdesire as much as any other players in theinternational arena.’7

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Setting the Scene… continued from page 6example, technologies developed withinthe petroleum industry have already ledto large reductions in emissions to airand water from refineries. In addition,oil in refinery effluent water in westernEurope has been cut by as much as 46per cent since 1990, even though 9 percent more oil is processed now than in1990. Another example from the lastquarter of the 20th century is thecombined contribution of theautomobile and petroleum industries todevelop technology which has thecapacity to reduce motor vehicleexhaust emissions by more than 90 percent of 1970s emissions.However, technology alone will notdeliver improved environmentalperformance. Unless technology isaccompanied by all the elementsneeded to support it— such asappropriate infrastructure, managementskills and systems, and a trained,competent and environmentally-awarework force—it will not deliver themaximum benefits. The benefits oftechnology are, in reality, the benefitsof putting in place a whole system—asystem that includes technology at itsheart, and management techniques,infrastructure and skilled humanresources as its body.Multi-stakeholder partnershipsCreating genuine partnerships amongdiverse groups is a complex and oftendifficult process but one which offersmany potential advantages. In fact,multi-stakeholder partnerships can:● mobilize greater amounts and awider variety of skills and resourcesthan can be achieved by acting alone;● address common problems in amore integrated, multi-disciplinarymanner;● minimize duplication of cost andeffort;● help traditional adversaries torespect each others’ needs andcapabilities;The oil industry and stakeholdersGovernmentsnational, state, local;intergovernmental organizations;the UN system;bilateral agencies;development banksHostcommunitiesindigenous people;employees;suppliers;customers;community activists;neighbours;local business;media●●Theoil industryemployeesandshareholdersfacilitate the dialogue and mutualtrust needed to work throughdiverse and often conflictinginterests, towards common goals;andpromote the flow of informationand technology cooperation.The oil industry is experienced inbuilding multi-stakeholder partnerships.The resources on which it depends arewidely dispersed throughout the world,often in developing countries, and itsproducts are used worldwide. Theindustry’s success at every stage of itsoperations depends on effective… continued on page 10Business partnersventure partners;suppliers;contractors;customers;bankers;competitors;trade unionsNon-governmentalorganizationsenvironmental groups;universities;research institutes;industry associations8

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGI N T E R V I E WPaul CoutrierPaul Coutrier, formerly Pertamina’s chief representative in London,is now Deputy Minister of the Environment in Indonesia.‘The oil industry has played a prominentrole in Indonesia’s economic development,particularly since the early 1970s,’ says PaulCoutrier, pointing out that in those daysabout 70 per cent of the country’s foreigncurrency earnings came from the oil andgas industry. Although the oil industry is100-years-old in Indonesia, it was onlyafter 1968, with the coming of Indonesia’sso-called New Order, that the industryreally took off.Environmental issues soon becameimportant. ‘In 1974,’ says Coutrier, ‘fouryears before we even had a Ministry of theEnvironment, Indonesia enacted legislationto prevent offshore pollution and abate oilspills. By then we had also started to buildnew refineries to very high environmentalspecifications, taking elaborate precautionsto protect local populations from bothpollution and noise.Technology cooperation, saysCoutrier, has been vital to thedevelopment of environmentally-soundforms of oil and gas exploitation.Indonesia is, since the last ten years, thebiggest producer of liquefied natural gas(LNG) in the world and the biggestsupplier of LNG to the Japanese market.‘This could not have been achievedwithout technology cooperation. Wewould never have known, for example,how to cope with the organic forms ofmercury found in natural gas. In this sense,technology cooperation for developmentis also technology cooperation for theenvironment. The two go hand in hand.’Why, then, is the oil industry’scontribution to technology cooperation‘Technology cooperation and capacity buildingbetween countries are vital to ensure that allforms of development integrate economic,environmental and social effects. Only in thisway can we hope to arrive at what I like tocall “development without antagonism.” ’so rarely recognized in internationaldebates? Coutrier doesn’t hesitate. ‘It’s amatter of language. The oil industry hasnever been able to capitalize on its ownperformance. For example, whereIndonesia’s refineries emit wastes into thesea, the effluent is subjected to a series oftreatments through which the oxygencontent is enhanced and eutrophicationpotentially reduced to harmless levels. Ifanyone asked me, I could speak for atleast a week just on the subject of thepetroleum industry’s contribution to theenvironment in Indonesia. But no onedoes ask me, and the story remainslargely untold.’Why is this? ‘One reason’, saysCoutrier, ‘is that technical experts withinthe industry find it hard to single outenvironmental contributions from purelytechnical ones. It is very important, then,that organizations such as IPIECA help theindustry publicize its environmentalcontributions. The oil industry has done somuch but the industry doesn’t even knowit. And if the oil industry does notappreciate what it has done, how can theoutside world?’Coutrier believes that from now onenvironmental technology must be built intonew production technologies as they aredeveloped. ‘We have made a good starthere in Indonesia. For example, it is now alegal requirement to make an environmentalimpact assessment as an integral part of allfeasibility studies. This must not only assessphysical and environmental impacts but alsosocial impacts.’Whatever we do now, says Coutrier,will affect us far into the future.‘Technology cooperation and capacitybuilding between countries are vital toensure that all forms of developmentintegrate economic, environmental andsocial effects. Only in this way can wehope to arrive at what I like to call“development without antagonism.”’9

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Setting the Scene… continued from page 8cooperation with governments, businesspartners, NGOs and host communitieson a worldwide basis. This cooperationis more important than ever before intoday’s highly competitive,environmentally-aware global economy.At the core operational level, fromexploration to end use, most oilcompanies are now collaboratingclosely with their contractors, suppliers,refining partners, distributors, retailersand customers to minimize resource useand emissions, to rehabilitateexploration and production sites, todevelop cleaner, safer and higherquality production processes andproducts, to promote recycling and lifecycle analysis, and to educate end-userson the benefits of energy efficiency.Traditional mechanisms forbusiness partnerships, such asproduction sharing agreements, jointventures, licensing agreements andequipment sales, are helping to spreadthe use of modern technologies and theglobal implementation of operationalguidelines aimed at reducing resourceuse and emissions.At the level of local communities,increased efforts have been made by theoil industry to move from one-way,philanthropic and sometimes patronizingrelationships to mutually beneficial, twowaypartnerships where both thecompany and its surrounding communitycontribute their varied resources andskills to local development. Examples ofthis joint approach are provided in anumber of the following case studies.The industry has had partnershipswith inter-governmental organizations… continued on page 12HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT GUIDELINESAn effective environmental managementsystem is an essential prerequisite to goodenvironmental performance. The oil and gasindustry has chosen to develop combinedhealth, safety and environment (HSE)management practices. Whilst health, safetyand environmental requirements oftencomplement one another, they do notalways do so. For example, measuresnecessary to safeguard personnel inemergencies may have adverseenvironmental effects and vice versa. Acombined management system allows mosteffective management of the complementaryareas and an efficient mechanism forresolving potential areas of conflict.The industry has developed a numberof guidelines on HSE managementincluding, for example, the E&P Forumguidelines which are designed specificallyfor the upstream oil and gas industry. Theydescribe the main elements necessary todevelop and maintain an HSEManagement System which is compatiblewith the ISO 9000 International Standardon Quality Systems approach and the ISO14 000 environmental management seriesunder development. They provide amodel which can either be used as atemplate for the development of a newsystem or as a means of furtherdeveloping existing systems. They are alsoadaptable to different companies and theirdifferent cultures.The American Petroleum Institute(API) management practices—part ofAPI’s Strategies for Today’s EnvironmentalPartnership (or STEP) Program—draw onthe API guiding environmental principles.Comprehensive supporting materials areprovided in API Recommended Practice9000. The practices cover the whole oiland gas industry and are designed to helpcompanies incorporate health, safety andenvironmental concerns into their planningand decision making.Both sets of guidelines are available tocompanies whether or not they aremembers of E&P Forum or the API.A principle objective of theguidelines is to ensure the spread ofgood management practice throughoutthe industry.10

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGI N T E R V I E WMohamed El-AshryChairman and Chief Executive Officer, Global Environment Facility (GEF)‘Technology cooperation,’ says MohamedEl-Ashry, ‘has been a critical driving forcein many national agendas.’The GEF Chairman believes that, post-UNCED, technology cooperation can nowmake a significant contribution to sustainabledevelopment. ‘The climate change and thebiological diversity conventions,’ he says,‘signal a new era of environmental treatymaking and partnership in which countriesacknowledge that their own economicdevelopment could lead to environmentaldamage. Successful implementation of thesetreaties will depend mainly on the transfer oftechnology and the availability of financialresources. In this context the GEF, which Ihave the honour to chair, has beendesignated by both conventions as theprincipal source of implementation funding.Naturally, then, technology cooperation isvery close to our interests.’El-Ashry is precise about what heexpects of technology cooperation. ‘First,the promotion and strengthening ofscientific research and technologydevelopment in the developing countries.Second, the transfer of scientific knowledgeand know-how to the recipient—wherethe capacity to absorb and use technologydoes not exist, technology ends up rustingaway in the field, as has so muchagricultural equipment in the past. Third,we have to relate the technology that isbeing transferred specifically to the needsof national development—and this newfocus has been one of the majorcontributions of UNCED.’Asked why industry’s past contributionsto technology cooperation are so rarely‘If industry’s role is now to become morecredible, industry needs to highlight the rolethat it can and has played in environmentalimprovement and sustainable development—not through rhetoric but with real lifeexamples of what has been done in the past. Ihope that IPIECA’s publication on technologycooperation will help do this.’recognized in international debates, El-Ashrycomes straight to the point. ‘Many industries,including the petroleum industry, have forsome time been perceived as pollutingindustries. If industry’s role is now tobecome more credible, industry needs tohighlight the role that it can and has playedin environmental improvement andsustainable development—not throughrhetoric but with real life examples of whathas been done in the past. I hope thatIPIECA’s publication on technologycooperation will help do this.’But more is needed. ‘More bridgeshave been built,’ says El-Ashry, ‘betweengovernment and the non-governmentsectors than between industry and thenon-government sectors. A better mutualunderstanding of the needs of each ofthese players is required for successfultechnology cooperation.’What, then, are the major barriers?‘Some would argue,’ says El-Ashry, ‘that theprice of technology is a major barrier. Othersargue that the main problem is getting theright kind of information. In the GEF we findthat we can use both intellectual and financialleverage to promote technologycooperation, while encouraging multisectoralpartnerships that lead to new waysof thinking about economic development.’At the same time, ‘Governments needto promote appropriate incentives toencourage private investment, mainlythrough good macroeconomic managementcoupled with clear sectoral strategies. Astable regulatory regime is very important,as are appropriate arrangements for therepatriation of foreign exchange and the like.’‘And the international community needsto continue its thinking: a clearing housefor technology information, independenttechnology transfer agencies, a financingfacility for joint venture technologydevelopments, these are all good ideas butthey must be developed further. At theGEF, we believe a modest amount of grantfunding can help change the calculus of privateinvestors and shift their priorities towardsenvironmentally-sustainable options. In thisway, investments can be leveraged whichmight otherwise never take place.’‘In this way,’ the GEF chairmanconcludes, ‘we can begin to address thespecific peculiarities of technologycooperation and avoid the generalities thathave led to so many past mistakes.’11

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Setting the Scene(IGOs) and non-governmentalorganizations (NGOs) for many yearsand this form of partnership is alsospreading, both in the areas of researchand policy making, and theimplementation of practical projects.Goal setting andvoluntary guidelinesAn important and relatively new formof partnership involves governmentand business working together to setenvironmental protection goals andtargets that are acceptable to both.This approach is an innovativealternative to often inflexibleprescriptive legislation in whichgovernment sets targets that industry isthen required to achieve, with penaltiesfor non-compliance. Prescriptivelegislation which does not takeadequate and realistic account of eitherbusiness conditions or thecharacteristics of the host country willstifle creativity, discourage investorsand decrease returns for all partners.Voluntary mechanisms of achievingpublic policy objectives are increasinglybecoming recognized by regulators.A good example of this newapproach is the recent experience ofcooperation between Amoco and theUS Environmental Protection Agencyin setting air control and wasteemission targets (see box on page 6).There is an increased need forcloser collaboration betweengovernment and the oil industry toensure that the policy and legislativeframework promotes increased energyefficiency and innovation in a costeffectivemanner, without underminingthe industry’s economic viability.Voluntary guidelines developedwithin the industry also play animportant role in demonstratingindustry’s commitment to soundenvironmental management. Theyalso provide an effective mechanismfor sharing good environmentalpractices. A good example is theInternational Chamber ofCommerce’s (ICC) Business Charterfor Sustainable Development.The oil and gas industry has alreadydeveloped and implemented a numberof guidelines. They range in scope fromthose which define principles ofresponsible environmental behaviour totechnical guidance on specific practices.Examples include the Oil IndustryInternational Exploration andProduction Forum’s (E&P Forum)guidelines on health, safety andenvironment (HSE) managementsystems and the management practicescontained in the American PetroleumThe joint E&P Forum/IUCN (World Conservation Union) guidelines for oil and gas exploration inenvironmentally-sensitive areas are available in English and Spanish (for mangrove areas) andEnglish and Russian (for Arctic and Subarctic onshore regions).12

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Setting the sceneInstitute’s STEP programme (see boxon page 10).The industry has produced morespecific guidelines such as the CanadianAssociation of Petroleum Producers(CAPP) Code of Practice, and theguiding principles, jointly produced byEUROPIA and E&P Forum. Otherexamples are the E&P Forum’sguidelines for environmental protectionwhich address operations in tropicalrain forests, mangroves, and Arctic andsub-Arctic onshore regions. Thesepublications are designed for individualsand organizations involved in oil andgas exploration in environmentallysensitiveareas, and are also meaningfulbecause they are the product of apartnership between an NGO, theWorld Conservation Union, and an oilindustry association, E&P Forum.In summaryThe importance of business and industrywas acknowledged at UNCED and isreferred to in Chapter 30 of Agenda 21:‘Business and industry, includingtransnational corporations, play a crucial rolein the social and economic development of acountry and should recognize environmentalmanagement as among the highest corporatepriorities and as a key determinant tosustainable development.’Private and official flows to developing countries, 1989–94financial flows (US$billions)250200150100500private flowsofficial flows1989 1990 1991 1992Overall, the volume of private capital flows to developing countries has quadrupled since the turnof the decade.The oil industry agrees with thisstatement and recognizes it has animportant role to play in contributingtowards sustainable development.Although the oil industry is reducing anon-renewable fossil fuel resource, it isstriving to minimize environmentalimpacts so that they are within thecarrying capacity of the affectedecosystems. This requires theintegration of environmentalprotectionplanning and managementinto economic decision making andengineering design. The wealth andemployment created by the businesssector must also be used to fight thebattle against both poverty andenvironmental damage. Since poverty isamong the greatest threats to theenvironment, its elimination is a1993 1994fundamental step in protecting theenvironment.The growing importance of thebusiness sector in promoting a moresustainable future is highlighted by thefact that private financial flows todeveloping countries have nowoutstripped official aid (see graph).The oil industry—which plays a keyrole in private financial flows—hasgained experience over many decades inthe forms of partnership reflected inAgenda 21’s recommendations. Thecase studies that follow bear witness tothis fact, and illustrate the variety ofways in which technology cooperationand capacity building, initiated by theoil industry, is contributing to the goalof environmentally-sound development.Source: World Debt Tables, 1994–9513

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGTemplate forSuccess …Technology cooperation and capacity buildingKey lessons learned byindustry partnersThe lessons learned—drawn from feedback fromstakeholders—reflect a long history of varying degrees ofsuccess, problems solved and challenges addressed. Theseexperiences have contributed to a better understanding of therequirements for successful technology cooperation andcapacity building. Key lessons are identified below.cannot occur without trust, long-termcommitment and mutual benefits for allpartners. This publication reveals some of theissues and challenges involved in steering newprojects along the road to success. The lessonslearned by the oil industry and illustrated inthe case studies provide a basis for futureprogress towards sustainable development.These lessons, the obligations andresponsibilities that are required of thepartners—the conditions for success—and asummary of the beneficial outcomes that canresult are summarized here.● Providing education and training■■■Industry must seek out, make use of and develop localexpertise.Industry should help to train and educate the localwork force, and strive for the widest possibleemployment from the host country.Safety, health and environmental standards must notbe compromised when transferring technical andmanagerial skills.Conditions for successThe likelihood of maximum benefit to all partners willbe greatly facilitated if a number of conditions aremet. These include:■■■■■■■■a stable economic system and an attractiveinvestment opportunity for investing partners;transparent and equitable legal and financialstructure and sound environmental laws;realistic expectations from the host country andthe communities of the benefits that may resultfrom the partnership;a long-term commitment and dedication ofresources by all partners;a fair distribution of benefits as a goal for allpartners;industry respect for local culture and values;a safe and secure working environment for allemployees and contractors; andno unnecessary barriers to movement of personneland materials.14

TECHNOLOGY COOPERATION AND CAPACITY BUILDING■Industry should look for opportunities to extendexisting local capabilities and strengths (for example,in social, cultural and environmental activities) whichbuild on long-term economic self-sufficiency anddiversification.● Respecting the needs of host countries and communitiesAlthough industry’s main priority is the building,commissioning and operating of core technologyfacilities, it is essential that the needs of the host countriesand communities are respected. Therefore:■■■■Partnerships should be initiated with a ‘learningphase’ in which the host country or local communitysets out its needs and priorities.Project activities should be reviewed to ensure the useof national or local capabilities.Local views must be properly reflected in theoperator’s activity.Recipients should be involved (e.g. contributinglabour, materials or financial support) in order thatcommunity aid and assistance programmes aresustainable and value-adding.● Protecting the environment■■■■■■■■The industry must strive to minimize environmentalimpacts so that they are within the carrying capacityof the affected ecosystems.Project participants must work together to reconcileenvironmental and economic goals. Early planning formanaging environmental issues is essential.National and international environmental laws andregulations must be complied with.Environment protection must be a high projectpriority.The prioritization of environmental issues must becarried out in consultation with stakeholders.The key to successful environmental protection lies inthe early identification of environmental issues, andthe assessment and mitigation of risks and impacts.Environmental standards should be based on scientificassessments and respect local priorities.Sensitive ecosystems should be identified andconserved wherever possible.● Building relations with stakeholders■■■■■Industry must ensure regular and opencommunication with stakeholders.Industry must respect the public’s right to participatein decision making where public interests areconcerned.Industry should strive to achieve the highest ethicalrelations with stakeholders and a fair distribution ofbenefits.Partnering opportunities should be sought withrecognized and respected local, national orinternational agencies for the delivery of programmes.Technology cooperation and capacity building shouldbe managed as ‘value-adding’ to the core businessrather than as a public relations exercise.Benefits to be enjoyedThe realization of mutual benefit is one of the mostimportant keys to success in technology cooperationand capacity building. Successful partnership is a‘win-win’ process in which both the overseas partnerand the host nation can reap substantial benefits.The overriding benefit resulting from successfulventures is the achievement of a sustainable balancebetween environmental protection and economicdevelopment. This includes:■■■■■■■■■a fair return on capital to investing partners;increased economic prosperity for the host country;a cleaner and safer environment;a better trained and educated workforce;development of local enterprises;a stable operating environment;cost-effective implementation of environmentallegislation;an enhanced image of private industry, andrelated long-term profitability; andimproved environmental management in localenterprise.15

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGTechnology Cooperation andCapacity Building in Practice▼Introduction to the case studiesOne of the earliest known examples of technology transferinvolving the oil industry occurred when, near the end ofthe 19th century, the Standard Oil Company introducedinto China a lamp, with a tin bowl and a glass chimney, forburning kerosene. The lamp, which became known as meifoo, or beautiful companion, soon became a familiarhousehold object in China, augmenting the limitedsupplies of vegetable and whale oils that had been used forlighting for millennia. These lamps were sold for a fewcents throughout much of Europe, Latin America, Africaand other regions of Asia. As a Standard Oil representativelater wrote: ‘If [petroleum] has brought a fair reward to thecapital ventured in its development, it has also carriedmore cheap comfort into more poor homes than almostany discovery of modern times’. While the languageperhaps reflects the paternalism of a past age, this is animportant illustration of the mutual benefits that can flowfrom making new technology widely available. A desirable‘service’ is provided and a fair ‘profit’ is realized.Today the process involves much more than a one-waytransfer of technology from rich countries to poor ones.Modern technology cooperation takes place between andwithin all types of countries, with a common goal tocontribute towards sustainable development.The case studies that follow have been selected on the basisof geographical distribution and subject area. One of the majorlessons to emerge from the study of technology cooperation isthat almost every attempt at generalization identifies differentand original ways, very much country-specific, of carrying outtechnology cooperation. Accordingly, there is no simple ‘howto’ model that would provide a template for successfulpartnership. Therefore, the case studies that follow focus onthe benefits of partnerships, rather that the complex process ofcreating and maintaining them.Although the operations and practices described in thecase studies, cannot yet be considered universal generalpractice, they do reflect emerging best practices within anincreasing number of companies. Only a sample of theexperiences within the oil industry are included, but thesetell the story of some of the initiatives that contribute tosustainable development by improving the nationaleconomies and surrounding communities’ quality of life,while also contributing to the long-term business successof the companies involved.They show how improved environmental monitoring andprotection, training and education, small business andinfrastructure development, better access to basic necessitiessuch as health care and clean water, as well as the creation ofmajor industries, have made this possible.Since the oil industry is highly technology and capitalintensive, some case studies include examples of thedeployment of sophisticated core technologies whichaddress key challenges facing the oil industry andsociety—the need for increased energy efficiency, reducedemissions, more effective products and processes, and theminimization of environmental impacts. In some of thecase studies, leading edge technologies have been deployedfirst in developing countries because that is where the energyresources are to be found. It is encouraging that throughoutthe industry more and more national employees fromdeveloping countries are becoming the industry’s experts.16

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Technology Cooperation and Capacity Building in PracticeAmoco in Western Siberia (page 18)BP in Colombia (page 20)Canadian Occidental in Yemen Republic (page 24)Chevron in Papua New Guinea (page 28)Elf Aquitaine in French-speaking countries (page 32)Esso in Malaysia (page 34)Imperial Oil in northern Canada (page 38)Mobil in Indonesia (page 42)PT Caltex Pacific Indonesia (page 46)Shell in Malaysia (page 50)Total in Senegal (page 54)IPIECA in the international community (page 58)17

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGCase Study OneAmoco in Western SiberiaCooperation between US and Russian enterprises ishelping identify means of revegetating areas of Siberia.This effort is part of a broader programme to repairdamage that occurred during past Soviet era developmentof oil and gas resources.The partners● Amoco Production Company● Nadym Gasprom● Komi Research Institute● Institute of Agriculture of the Northern Urals● US and Russian scientistsYamalPeninsulaSalekhardUrengoyWesternSiberiaOver the past five years, many oil and gas companies havebeen investigating investment in the former Soviet Union. Aprime area of interest has been Western Siberia, an area richin proven oil and gas reserves but lacking capital and thetechnical assistance needed to bring major fields intoproduction. Since 1989 Amoco Production Company hasbeen investigating the economic potential for oil and gasdevelopment in the Yamal Peninsula region of north-westernSiberia. Located above the Arctic Circle, the area ischaracterized by long cold winters, short cool summers andis underlain by permafrost. The vegetation is typically lowgrowing shrubs and forbs. Native reindeer herders have usedthe area for centuries, pasturing vast herds in the tundra inthe summer and returning to the forested areas in the winter.From field visits and discussions with community leaders andregulatory officials, it was determined that terrain damageand erosion associated with earlier exploration anddevelopment activities was a major environmental concern.Revegetating disturbed areasSurface vegetation acts as an insulating barrier between thesurface and permafrost layers in the Arctic and sub-Arctic,protecting the latter from thawing during warm periods. Inthe summer, heavy vehicles destroy this vegetation and thescars of military and industrial movements have beenrecorded in the tundra over many years. Much was learntabout this phenomenon, and about how to rectify andprevent it, in Canada and Alaska during the 1970s and 1980s.Russian scientists have also been conducting studies intomethods of reclaiming disturbed areas in sub-Arctic regionsbut have only recently begun studies in the more severeArctic. Studies have included species and seed mix trialsusing locally available native species. Some species have beenplaced into seed increase programmes on the basis ofrelatively short-term data, but few have gone through arigorous selection process.Revegetation trials in the North American Arctic havebeen under way since 1968 and have included species, seedmix and soil nutrient testing. Two important areas for testinghave been Prudhoe Bay in Alaska and the TuktoyaktukPeninsula in the Northwest Territories of Canada. Bothareas are at about the same latitude as the Yamal and have asimilar climatic regime. A significant difference is soiltexture: the Yamal is sandy compared to the silty clay soils of18

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study OneAmoco in Western SiberiaRight: teamwork was a key tosuccess as the group worked toput in the joint study plots;upper right: US and Russianscientists discussing theplanting programme; belowright: grasses being plantedwith a seed drillthe North American sites. Over the past 25 years a numberof species tested at the North American sites have gonethrough a careful selection process to identify desired traitsand seed from selected plants has been placed intogovernment certified seed increase programmes. Most of thesuccessful species are selections from native populations andall exist in some form in the sub-arctic or Arctic plantcommunities found in Siberia.Joint revegetation trialsAmoco, with the assistance of Nadym Gasprom, a majorRussian gas producer, imported selected grass species andplaced them into test gardens on the Yamal Peninsula in1991. These studies were monitored and expanded over thenext three years, culminating in joint Russian/NorthAmerican revegetation trials in 1993. The initial trials weredesigned to assess the capability of the North Americanvarieties to survive in the Siberian north. The second year ofstudies focused on comparing methods of planting on sandysoils. During revegetation, seeds are normally broadcast onthe surface. However, this leaves them vulnerable to winderosion and to desiccation. Studies in 1992 tested theeffectiveness of using a seed drill—which places seed in rowsat controlled depths—as against broadcast seeding andharrowing. In addition the drill was used to establish severalfields of grass species to test the ability to raise grasses forseed production on the Yamal Peninsula. In the third yearjoint Russian/American species and seed mix trials wereestablished to allow comparisons of species and methods at acommon site. Varieties of 23 grasses and 1 legume wereselected for placement into test gardens. All but three arecircumpolar and are represented in the native vegetation ofthe former Soviet Union as well as North America.Results from cooperationEarly results suggest that revegetation and seed production inArctic Siberia is feasible using species developed and raised inNorth America. Eighteen of the original 23 species havesurvived and 10 have maintained a row cover of more than 75per cent after three growing seasons. Four of these species, putinto seed increase tests, flowered and set seed by the secondgrowing season. However, because of the variable climate inthis region, three to five more years of monitoring will beneeded to establish confidence in their long-term survival andto determine the quantity and quality of seed produced.As expected, covering the seed by drilling or by harrowingproduced good results. The approach used during actualoperations will depend on equipment availability. Finally, thejoint trials demonstrated that both countries have revegetationspecies that may prove useful in this region. However, at amore fundamental level, they demonstrated that throughcooperative efforts we can not only learn from one another but,in doing so, also improve our ability to protect the environment.19

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGCase Study TwoBP in ColombiaA scheme to monitor tropical river systems, and assess theimpacts of oil and gas exploration on them, has ledsimultaneously to scientific innovation and to localcapacity building.The partners● BP Exploration Colombia● the Colombian Natural Renewable Resources Institute● local consultants● the local community● the Government of ColombiaThis case study focuses on the development of amethodology for monitoring and assessing tropicalfreshwater systems which required an initial scientific studyof the ecology of tropical river systems. Previously, theassessment of human impacts on tropical river systems hadbeen carried out using a variety of techniques, some morerigorous than others, that produced results that could noteasily be compared. The new methodology has beendesigned in such a way that it can be adapted for useanywhere in the tropical world and can provide a means ofassessing impacts on freshwater systems in a comparable andquantitative manner. The technique, and the studies thatpreceded it, were developed largely by local consultants. Thiscase history thus describes an example of simultaneouscapacity building and scientific innovation.VenezuelaMedellinGuyanaBogotaCASANAREColombiaEquadorBrazilPeruSurinamFrenchGuianaMonitoring environmental impactsThe project is based in the foothills of the EasternCordillera, a vast, diverse region, rich in water resources.The area is the source of several rivers which form theheadwaters of the Orinoco River, which flows for most ofits length through neighbouring Venezuela. The OrinocoRiver is of great importance as a source of water fordomestic, agricultural and industrial usage, and for itsunique ecology. Indeed, the Orinoco delta has beenproposed as a World Heritage site.The water resources in Colombia’s Eastern Cordillera arealso important sources of water for drinking and agriculture.The region, once wooded, was cleared about 70 years ago,mainly to open up the land for cattle ranching. This ranching‘The Cusiana studies are important because they will ultimatelybenefit the local communities by helping to conserve the regionsflora and fauna and by promoting environmental awarenessand appreciation … this project will improve the quality of lifeof the people of eastern Colombia’‘In the measure that methods for assessing environmentalimpact are improved, we can improve environmental standardsand national legislation to achieve yet greater improvement’Dr Jorge Hernandez, Advisor,Ministry of Environment20

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study TwoBP in Colombiahas already led to some deterioration in water quality—localized organic enrichment and run-off from areassuffering from soil erosion. Despite this, the area is animportant centre of both aquatic and terrestrial biodiversity.It was clearly extremely important to establish somemeans of assessing the impact that oil and gas operationsmight have on these river systems. However, knowledge oftropical river systems in the Casanare region was extremelylimited. Consequently, no proven methodology existed forassessing impacts. A major study was therefore undertaken toestablish the physical, chemical and biological characteristicsof the local river systems.In addition, a large reference collection of flora and faunawas made. This consists of 117 species of plants, 89 species ofalgae, 98 species of fish and more than 130 species of smallinvertebrates. The collection has been donated to theColombian Natural Renewable Resources Institute and isbeing used by Colombian scientists in their research studies.Aerial view of a drill site in the Casanare foothills, with water treatmentpools in the foreground and the Colombian eastern plains in thebackgroundTHE BACKGROUNDBP is currently concentrating itsactivities in Colombia on thedevelopment of the Cusiana andCupiagua fields in the Casanare Foothillsof Colombia’s Eastern Cordilleramountains. Cusiana, with an estimated1.5 billion barrels of oil, is the largestfield yet discovered in Colombia.Cupiagua, at around 500 million barrels,is the third largest field discovered inthe country.BP has a 19 per cent interest in theCusiana and Cupiagua fields, and is theiroperator. Ecopetrol, the state oilcompany, holds 50 per cent, and Totaland Triton have 19 per cent and 12 percent respectively. The associationcompanies have 6 years to explore and22 years for development and productionafter which the assets revert to theColombian government. A 20 per centroyalty is paid to the government as wellas some oil taxes and other contributions.The project will make an importantcontribution to the Colombian economy.The project’s total cost is estimated atUS$6 billion dollars. A quarter will bespent in the Early Production Phase,which will lead to the production of150 000 barrels a day from the Cusianafield. The remaining US$4.5 billion will beinvested during the Full FieldDevelopment phase, which will becompleted in late 1997 and will lead tothe production of 500 000 barrels of oil aday. In terms of investment and scope,Cusiana and Cupiagua are amongst thelargest projects ever designed, procuredand constructed in Colombia.BP now employs about 700 people inColombia, of whom 600 are locals.Colombians form a significant proportionof the senior management team and fill animportant number of professionalpositions. The proportion of expatriateemployees will decrease as the projectcontinues. Partnerships have beenestablished not only with businesses butalso with government, agencies, thecommunities in the areas of influence,contractors and suppliers.Environmental education is animportant aspect of these partnerships.The ‘El Cusiana Vive’ campaign, based onBP’s own biological monitoring inCasanare, has promoted environmentalawareness in schools through workshops,murals and teaching materials. This is partof BP’s community strategy in Colombiawhich includes a package of programmeson training support, health care, low-costhousing, water supply and sanitationwhich has attracted World Bank attentionas a cost-effective model for providingsupport to sustainable development.21

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study TwoBP in ColombiaBiological sampling in progressReference collection of flora and faunaMethodology of the studyThe study was designed and managed by local BP staff, whohad access to the international scientific literature in thisarea. The fieldwork was carried out by local staff with theassistance of local consultants. They followed the scope andtechniques established and tested by BP environmental staff.The study has established new standards in baselineenvironmental monitoring in Colombia. Chemical andphysical analysis not undertaken in the field was carried outin laboratories in Colombia. Laboratory quality assurancewas established after reviewing related techniques andstandards stipulated in Colombian legislation, as well as someinternational standards, with support from BP’s laboratoriesin Warrensville, Ohio, USA.The methodology for the environmental monitoring andassessment of the river system was designed to include an ongoingassessment of ecological, chemical and physical quality.It is based on space/time relationships between the physicaland chemical conditions of water bodies and their biology.The methodology is equally applicable to the rest ofColombia and other tropical regions.‘The Colombian Association of Limnology gave this study the“Limnos de Oro” (gold medal award) because it considered thisinvestigation as one that has a clear and concise methodology.The method uses organisms that are present in the water toindicate how much contamination there is, and thus,the quality of water’.Dr Gabriel Roldán, Honorary PresidentColombian Society of LimnologyWater testing at Cupiagua B2 drill site, July 199422

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study TwoBP in ColombiaThe way forwardThe environmental monitoring programme continues inthe Casanare region to allow assessment of any impactsthat the oil and gas operations may have on the watercourses. The methodology will continue to be tested andrefined as necessary.The local consultants involved in the exercise are nowfully competent in the use of the techniques and will spreadthe methodology through their work throughout Colombia.BP will also use the technology on projects in otherdeveloping countries where no monitoring protocolcurrently exists.The methodology has been welcomed by the ColombianGovernment and is in the process of being integrated intonational environmental monitoring procedures by theMinistry of the Environment.The methodology was presented to members of theColombian scientific community at the second nationalsymposium on limnology, held in August 1994, and receivedthe gold medal award, given only once every two years. BPstaff are preparing a book, The Ecology of the Creeks andStreams of the Piedemonte Area of Casanare, based on theresults of the study. In addition, a number of technical papersare being prepared for publication in the national andinternational scientific literature.Drill site at dusk, with water treatment pool in the foregroundResults of the initial scientific study were incorporated byBP into an environmental education programme. Thisincluded the production of booklets, posters and othereducational material which are distributed to schools. Theprogramme is being used extensively in schools throughoutthe Casanare region and is specifically aimed at teachingchildren about environmental issues using information abouttheir local environment in order to bring the subject alive forthem. BP staff provide technical support to the project,whilst teachers have been trained to use the package by aspecialist organization called Taller de la Tierra.23

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGCase Study ThreeCanadian Occidental in Yemen RepublicA partnership approach to developing oil resources inYemen Republic has improved schools, water and energysupplies, environmental protection and health care in anumber of village communities, and provided training forYemeni nationals.The partners● Canadian Occidental Petroleum Company (operator)● Occidental Petroleum Ltd● Pecten● Consolidated Contractors Co., village cooperatives inYemen Republic● the Yemen Government● local communities and NGOs● UNICEFSudanEthiopiaYemen RepublicDjiboutiSaudi ArabiaAdenSomaliaAl MukullaQatarUnited ArabEmiratesOmanIranCanadianOxy adopted a partnering approach with theYemen government in developing the country’s Masilahydrocarbon resources. This has produced a mutuallyrewarding, and economically and environmentallysustainablerelationship.At project conception, the Yemen government had noenvironmental regulatory framework in place. CanadianOxy,determined to conduct its activities in an environmentallyresponsiblemanner, decided to adopt widely acceptedinternational standards of environmental design for theYemen project, including a commitment to undertake adetailed environmental impact assessment (EIA).Taking the environment into accountThe EIA methodology that was adopted identified keyenvironmental sensitivities such as protection of groundwaterresources, small intensive agricultural areas, rich marinefisheries and significant archaeological resources near theproject facilities. Pre-construction investigations utilizedYemeni authorities from a number of disciplines, and theresulting impact avoidance and minimizationrecommendations were put forward and integrated with thefinal design and construction plans. This provided anopportunity for Yemenis involved in the project to learnenvironmental impact assessment technology.This approach and the documents it produced (whichwere distributed to government agencies) will be useful forfuture industrial developments in the Yemen Republic.As is now common practice in most of the developedworld, environmental planning for the project did not endwith completion of construction. Rather, the predictions ofenvironmental effects and the measurement of actualoperational impacts will continue throughout the life of theproject through monitoring of key indicators in both themarine environment and in the onshore production areas.‘We appreciate all the work and help that Canadian Oxy hasput into this project and towards making it long-lasting andself-supporting. Without help in training in technical andservicing requirements and business matters, this project wouldhave been short-lived.Omer Abdulla Al-Jabry, Mamoursenior local representative of the government, Saah District (1993–94)24

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study ThreeCanadian Occidental in Yemen RepublicThese programmes will help to maintain a focus onenvironmental concerns. They also serve as a means ofdeveloping in-country environmental expertise.Building partnerships at community levelAlthough much of the Masila Block is sparsely populateddesert, numerous small villages are scattered throughout themore protected dry river valleys or ‘wadis’. Most of thesevillages lack clean, reliable water supplies, have onlyrudimentary educational facilities, lack modern powersources, and have virtually no health services. Local peoplehad greatly exaggerated expectations that all these needs andmore would be met with the completion of theCanadianOxy project.In the interest of balancing local expectations andfostering a stable business operating environment,CanadianOxy implemented a Community Affairs Program.The company provides a modest budget as seed capital forlocal projects which are screened by a managementcommittee that includes local community representation.This provides assistance to some villages in a way that fosterssustainable economic development and promotes anentrepreneurial spirit instead of reliance on hand-outs fromgovernment or other benefactors.For example, when CanadianOxy was approached by avillage for the donation of a large power generator to replaceone that had broken down, the village leaders were persuadedto form a utility cooperative. CanadianOxy purchased thegenerator after reaching agreement that its investment wouldbe repaid in instalments, and that the cooperative wouldcharge users enough to meet operating expenses, andaccumulate sufficient reserves to meet maintenance andreplacement costs. The village is now happy to have reliablepower, and a new sense of business pride has been established.A similar approach has been taken in other localcommunity projects where CanadianOxy is providing thecapital to improve water supplies through the drilling ofwells and the construction of storage tanks and distributionsystems. Again, each village forms a cooperative that meetsongoing expenses and repays CanadianOxy’s investment.Financial assistance has also been provided to some healthcare organizations but only to those which require the usersto make a contribution, either financially or in-kind.A novel project that combines waste recycling withTHE BACKGROUNDOccupying the south-western corner ofthe Arabian peninsula, Yemen Republicoccupies a strategic location on the routefrom the Mediterranean to the Far East.Although several adjoining countries haveenjoyed the benefits of petroleum-relatedwealth for many years, Yemen has onlyrecently become an oil-producing nation,and only on a modest scale. With therecent addition of some 150 000 barrelsper day from the Canadian Oxy project inthe Masila Block of the HadramoutGovernorate, the country’s daily outputhas now risen to about 350 000 barrelsper day. This is a significant source offoreign exchange to Yemen Republic.The Canadian Oxy project itselfconsists of production and crudetreatment facilities in east-centralHadramout Governorate, connected to amarine export terminal near Mukulla, by a135 km pipeline. The output is producedand sold into the international market on acooperative basis with the Yemengovernment and private sector partners.Yemenis hope to see recent regionaldifferences resolved and the evolution of astrong and diverse economy, based largelyon petroleum development and export,and foreign investment in manufacturing,fisheries and shipping.Yemen is still a developing nation,having lacked the petro-dollars of its Arabneighbours and having remained in isolationfrom the developed world for many years.The population has grown dramatically inthe past two decades, but the health,education and social infrastructure has notcome close to meeting the country’s basicneeds. Although some small steps are beingtaken through foreign aid projects, Yemensuffers from a low literacy rate, high infantmortality and high unemployment.Awareness of environmental issues is in itsinfancy and only recently has the Yemengovernment introduced a regulatoryframework that is still under development.Y E M E NAdenSaudi ArabiaTarimSay’unR E P U B L I CH A D R A M O U TAl Mukulla25

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study ThreeCanadian Occidental in Yemen Republic‘We appreciate Canadian Oxy’s help in supplying our peoplewith the most basic requirement of water. We hope to repayCanadian Oxy’s investment in about two years. We will alsohelp other communities by supplying them with water at lesscost than they are now paying.’Saeed Ba-abad, Sheik of Ba-abad Tribesupport to local education is one in which waste constructionmaterials such as packing crates are converted to school desksand donated to local schools, most of which are crowded andlack furniture of any kind. Other materials such as cement,paint and scrap lumber have been donated to regionalschools, with the recipients contributing their own labour tomake the necessary repairs.CanadianOxy is also seeking partnerships with foreign aidorganizations as a means of stretching its funds further. Anexample is a cooperative programme with UNICEF in whichthe CanadianOxy donation is combined with others to fund aproject that combines plastic recycling with revegetationprogrammes. Waste plastic is collected by school children tomake containers for tree seedlings that the children nurtureuntil they are big enough to be planted out. In another case,CanadianOxy is making Canadian aid agencies aware ofYemen’s desire to expand its marine fisheries and, hopefully,reach agreement on provision of excess Canadian fisheriescapacity to this country.Bin Yumain District Mamour, Selamin Farj Al-Ali, presenting acommemorative plaque to CanadianOxy representative Garry Mann, inappreciation of assistance with school refurbishment.Sustaining the partnership through trainingThe CanadianOxy/Yemen project utilizes the latest processtechnology and controls and, as such, requires a skilledworkforce to ensure safe and efficient operations. FindingYemenis with the right skills or the ability to acquire theseskills has been a challenge. Raw recruits who have basiceducational qualifications are brought into the trainingprogramme where the initial focus is on improving theirEnglish. Basic petroleum-related science skills are workedon, and then more operation-specific training is undertaken,including on-the-job training, over the course of two to fouryears (see box).A portion of the curriculum is directed toward instillingbasic environmental, health and safety awareness, before thegraduates become fully qualified. Contractors are alsoencouraged to invest in training their Yemeni employees toassume greater responsibility. The marine servicecontractor, for example, has successfully trained its shipSchool classes being held outdoors in the village of Ressib. CanadianOxyprovided financial and material aid to this community in the building of anelementary school, presently under construction.‘Helping with schools is the most important way we canprovide for the future of our children so they will be betterprepared to help themselves. We hope that with better educationour people will be equipped to obtain more work withCanadianOxy in the future.’Selamin Farj Al-Ali, Mamour of the Bin Yumain District (1993–94)26

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study ThreeCanadian Occidental in Yemen RepublicTRAINING PROGRAMMESCanadianOxy has made a substantialcommitment to training Yemenis whopossess the basic academic capabilities butwho lack the necessary technicalknowledge, skills or experience to operatea variety of equipment safely andefficiently. Candidates meetingCanadianOxy’s minimum educationalstandards—completion of secondaryschool—are enrolled in the first yearFoundation Program. Lasting 9–12 months,this programme focuses on improving thetrainees’ English language comprehensionand technical vocabulary. Working modelsand field visits are used to illustrate andreinforce the trainees’ understanding ofequipment and processes. Rounding outthe first year’s more ‘academic’ curriculumare segments on elementary physics,chemistry, mathematics and electronics.A number of aptitude tests areadministered to supplement the formaltest data collected during the first year oftraining. These evaluations are then usedto assess overall suitability for moreadvanced operations. A second year oftraining incorporates both classroom andon-the-job experience to begin to link thetechnical terminology and concepts to siteapplications. Each building block ofclassroom material and associated on-thejobtask is linked in a module. Traineesprogress from one module to another bysuccessfully completing examinations onboth the academic and on-the-job portionsof a module. Essential health, safety andenvironment practices introduced duringthe Foundation Program are applied toreal job site situations. Although traineesare expected to spend time in a variety ofdepartments during their first real periodof exposure to the field, by the end of thesecond year they will already have begunto specialize in one of the core disciplines:field or facilities operations, mechanical,electrical or instrumentation maintenance.A third and fourth year involvesincreasing proportions of on-the-jobpractical training in relation to formalclassroom training. Again, a modularapproach is used to measure how welltrainees are actually retaining and applyingthe technical knowledge being transmitted.Depending on the specific discipline, atypical trainee will ‘graduate’ in his tradeafter the fourth or fifth year of appliedpractice in the field. At that point, thetrainee is deemed to be qualified andcapable of handling the day-to-dayrequirements of his discipline.It is expected that 2–3 intakes of some24 trainees per year will be necessary totrain a sufficient number of Yemenis toreplace expatriate technicians andoperators. As the pool of qualified nationalemployees expands, training will developYemeni employees’ supervisory andmanagement skills in order to replaceexpatriate foremen and supervisors.Work/study programmes in the company’sCanadians operations for candidatesselected on the basis of educationalachievement and work performance is oneapproach that will be utilized.support crews so that the state-of-the-art oil spill responseequipment is essentially all maintained and operated byYemen nationals. These badly needed skills are beingtransferred elsewhere in Yemen as contractors expand theirwork to other local clients.CanadianOxy is also seeking to support communityoutreach environmental educational opportunities in Yemen.For example, in cooperation with government and nongovernmentorganizations, it will support the preparation ofpromotional materials aimed at educating coastal residentsabout the ecological importance of sea turtles.Through these measures, CanadianOxy is taking itsresponsibilities for the transfer of both ‘soft’ and ‘hard’technology to the host country. This approach is viewed as asound investment to ensure long-term project success and asa necessary contribution that must be made by responsibleoperators in the increasingly globalized petroleum sector.Saah District Mamour, Omer Abdulla Al-Jabry (on left), and RessibVillage elders discussing a water supply system development project thatCanadianOxy is sponsoring. Under an agreement with the village,CanadianOxy purchased a water pump, generator and water pipe, and fundedconstruction of a large tank using local materials and labour. The villagewill repay the majority of CanadianOxy’s investment over a two-year period.27

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGCase Study FourChevron in Papua New GuineaPapua New Guinea’s oil production is accompanied byinnovative plans to protect the environment, improve thewell-being of affected people and build up businesses thatwill thrive after the oil has run out.The partners● Chevron Niugini Pty. Ltd (on behalf of the joint venturecompanies: BP Exploration Operating Company Ltd,Ampolex (PNG Petroleum) Inc., BHP Petroleum(PNG) Inc., Japan PNG Petroleum, Oil Search Limited,and Petroleum Resources Kutubu Pty. Ltd)● the government of Papua New Guinea● local landowners● environmental organizations, including the World WideFund for Nature (WWF)I ND ONE SI AP a p u aLakeKutubuKikoriRiverGULFOFPAPUAN e wG u i n e aThe Kutubu Petroleum Development Project was the firstsuccessful attempt to produce commercial oil in Papua NewGuinea. In 1992, it turned the country into an oil-exportingnation. The project has had a major impact on gross nationalproduct and the incomes of the people of Papua New Guinea.Current production is 125 000 barrels per day, producing arevenue of more than US$1 million a day. The project isoperated by Chevron Niugini Pty. Ltd as a joint venture onbehalf of the other participants (see list on the left).The field is located near Lake Kutubu, a pristine lakelocated in the mountains of the Southern HighlandsProvidence. Rainfall averages more than 5000 mm a year,and the mountains are covered by tropical rain forest. Anumber of small villages are located near the field and aredependent on the land for their subsistence.Oil is exported through a pipeline running south along andthrough the Kikori River delta, to an export terminal located30 miles offshore in the Gulf of Papua. The Kikori River is amassive, fast-moving river flowing into the Gulf of Papuathrough a complex, environmentally-sensitive delta region.Numerous villages line its banks, supporting 10 000 peoplewho depend largely on the river for transportation and food.Environmental protectionThe Kutubu Wildlife Management Authority was founded incollaboration with the Department of Environment andConservation, the landowners and the joint venture toC OAustraliaR ALSE A‘The Kutubu Project has had a tremendous positive impacton Papua New Guinea’s economy. Revenue from the projecthas been used to support government activitiesthroughout the country.Many of the local people living in the Kutubu Project area aregainfully employed and now have the training and experiencefor future opportunities outside the project area. One of the mostgratifying results is the development of local landownercompanies. They in turn have employed many local citizens andfuture opportunities are growing.Iamo IlaSecretary, Environment and Conservation DepartmentPapua New Guinea28

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study FourChevron in Papua New Guineaspill response drills to gain a better understanding of the systemused to respond to spills and how to deploy spill preventionequipment. In addition, agency personnel have been sponsoredfor professional seminars and overseas training.Lake Kutubu, after which the project is nameddeclare Lake Kutubu a protected area. An EnvironmentalPlan was developed and approved by the governmentthrough a forum process.The key elements of the plan are:●●●●●●minimum disturbance of the tropical rain forest;facilities designed so that an accidental release of oilwould not effect Lake Kutubu;pipeline buried for better protection, reducing clearancerequirement along the right of way;closed production systems, where all produced waterand gas are reinjected into the producing horizons;equipment and trained personnel available on-site torespond in the unlikely event of an oil spill; andan assessment of socio-economic, cultural andarchaeological impacts—flora, fauna, and archaeologicalitems are not to be disturbed or removed.Community involvementThe joint venture intends to mitigate the negative impacts ofthe project on the local population and to offer positivebenefits. Two major priorities are to train and developoilfield skills for the people of Papua New Guinea, and toenhance the well-being of communities in the area while notadversely changing their traditional life style.The oilfield training programme covers many areas,including the following key components:● preference in hiring first to local people, then to peoplefrom the affected provinces, and then to Papua NewGuinea as a whole;● an extensive on-site programme to train people in allfacets of oil production;● a scholarship programme both at high school and collegelevel to develop professional disciplines.An Environmental Management and Monitoring Plan wasalso developed. It outlines how the project can minimizeenvironmental impact and stipulates that socio-economicmonitoring should take place. Other plans developed andimplemented to enhance safety and environmentalperformance include the Safe Practices and ProceduresManual, the Oil Spill Contingency Plan, the Pipeline IntegrityMonitoring Program, the Water Quality Monitoring Program,the Rehabilitation and Monitoring Program and the WasteManagement Plan. Government agencies participated in oilEngineer checking valves at the central processing facility, Kutubu29

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study FourChevron in Papua New GuineaControl room operator at Kumul Marine Terminal in Gulf of PapuaOperations Training Assistant at Moro camp near Lake KutubuThe Community Affairs Program works with localvillages. Some key components are:●●●building of schools, health aid posts and water tanks inthe villages;providing training, education and materials in the area ofhealth and agriculture to improve nutrition and health ingeneral;providing training on basic crafts such as carpentry,welding and metal working; and●financial assistance and training for landowners todevelop businesses that will be sustainable after the finitelife of the project.Efforts are being undertaken to foster landownercompanies. The largest is Iagifu Oil & Gas (IOG), whichrepresents the Fasu-speaking people, the main ethnic groupof the project area. IOG has developed its contractingcapabilities through its experiences during construction andWORKING WITH THE WORLD WIDE FUND FOR NATUREA new partnership has evolved to run an IntegratedConservation and Development Project in Papua New Guinea.The partnership includes WWF-US, Chevron in the UnitedStates, Chevron Niugini in Papua New Guinea, and national,provincial and local governments. It is being managed by WWF inclose cooperation with local landowners and communities, andwith financial and logistical support from the oil companies, includinga grant of more than US$2 million in cash and additionally, morethan US$1 million in kind.The project is to help local people throughout the catchmentof the Kikori River system to establish a model of ecologicallysustainable development which protects the outstandingbiological diversity of the region and promotes sustainableresource use. Activities are to include ecologically-sustainableforestry, nature-based tourism, butterfly and insect farming,development of ethno-botany, improved subsistence agricultureand establishment of protected areas. The initial phase of theproject covers a three-year period. It is anticipated that after sixyears the project is to be operated by local people.Don Henry, WWF, Washington D.C.,Rex Naug, WWF, Papua New Guinea30

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study FourChevron in Papua New GuineaTypical village near the project area; more than 10 000 people live in villages like this, depending mainly on agriculture and the river for their livelihoods.the early phases of operations to a point where it has built upa reputation as a contractor of choice. It is now applying thisexpertise to contracts and projects outside the oilfield area todevelop long-term business interests that are not dependenton the ongoing presence of the Kutubu Petroleum Project.Aside from civil works and government building contracts,the company is also establishing wholesale trading operationsand an orchid farm which will eventually produce orchids forthe export market.Another landowner company from the export pipelinearea, Tiati Eboda, has developed a small tourist lodge on thebanks of the Mubi River next to Beaver Falls, one of the mostspectacular waterfalls in the world. This lodge is nowreceiving great interest from adventure tour companieswithin Papua New Guinea and abroad because of the pristinerain forests which can be explored from the many pathsleading from the lodge.The concern Chevron has shown for thelocal people has contributed to the success of the project.Chevron has also been the first major corporate organizationin the country to have gone a long way to not onlydeal with the effects of its activities on the environmentand people but to have gone further in several waysto assist landowners in consultation withgovernment to protect their natural environmentin the areas of its project activities.Iamo IlaSecretary, Environment and Conservation DepartmentPapua New GuineaMoro airstrip, built by the Kutubu Joint Venture to fly in machinery andpersonnel needed for the project. Lake Kutubu can be seen in the background.31

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGCase Study FiveElf Aquitaine in French-speaking countriesA teaching document for 14 to 16 year-olds is providingenvironmental education throughout the French-speakingworld, and is also being used elsewhere as anenvironmentally-informative means of teaching theFrench language.The partners● Elf Aquitaine● the French Ministry of Education● the French Ministry of the EnvironmentElf Aquitaine has always been heavily involved in education:education, first of all, of its employees, to train them tocomplete their activities with maximum efficiency and with dueregard to environmental protection; and education, secondly,of the general public and, more specifically, of young people.In this context, Elf Aquitaine decided, in 1991, to make acontribution to the environmental education of children inthe age group of 14 –16. The environmental teachingdocument prepared for this purpose, originally designed tohelp French teachers introduce environmental studies totheir pupils, has since been widely used to promoteenvironmental awareness in more than 70 countries(particularly French-speaking ones).● France Nature EnvironnementIrelandUnitedKingdomSpainParisFrance(andFrench-speakingcountries)GermanyItalyAustriaPreparing the documentThe environmental teaching document (ETD) was preparedwith the support of the French Ministry of Education, theFrench Ministry of the Environment and with the help of aFrench NGO, France Nature Environnement.A group of teachers agreed to form part of a steeringcommittee to define what was required, to suggest methods ofsupport and to test the first edition of the ETD. Elf Aquitainecoordinated the work and funded the whole project; and ElfAquitaine experts contributed their own specialist knowledge.The ETD covers water and air quality preservation, thetreatment of hazardous wastes, soil protection andreclamation, and nature conservation. It consists of ateacher’s booklet giving the necessary information toconduct a course and a series of transparencies for overheadprojection. Each teacher is left with total freedom to presentthe information as he or she wishes.Widespread distributionTwenty thousand copies of the ETD have been printed anddistributed to teachers in many countries, where they arehelping to produce real environmental understanding in bothdeveloped and developing nations. In some non-French‘Elf has given us essential information and provided usefulknowledge for the educational world. This is a mustfor the teacher.’Professor Phan-Tran-Dong, Hanoi, Vietnam32

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study FiveElf Aquitaine in French-speaking countriesTransparency usedin the teachingdocument‘Reduction ofAtmosphericEmissions’speaking countries, the ETD is used by language teachers,thus combining environmental education with the learningof the French language.The ETD has been welcomed by ministries, nongovernmentalorganizations and even private enterprisesfor the training of their employees. It is estimated that theETD has already helped to make more than 2.5 millionchildren aware of the issues involved in environmentalprotection. Many of these children live in developingcountries such as Morocco, Ethiopia, Vietnam, Gabon, theCongo and Cameroon. But the ETD has also beenextensively used in developed countries such as Australia,Belgium, Japan, the United Kingdom, the United States …and France, of course.One of the aims of the ETD was to provide the sameinformation on environmental conservation to all children,no matter where they live. It is Elf Aquitaine’s view thatsustainable development cannot be achieved without theparticipation and education of young people.‘My pupils are very interested in the content of this document.We would like this initiative extended to other disciplines.’Professor Raïsi, Port-Gentil, Gabon‘Excellent and useful work—please continue.’Elf Environmental Teaching Document (ETD) ‘Mieux comprendrel’environnement’ (Understanding the environment better)Professor Blumbergs, Meknes, Morocco33

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGCase Study SixEsso in MalaysiaDevelopment of the petroleum industry in Malaysia isplaying an important role in that nation’s drive to becomean industrialized nation and meet its ‘Vision 2020’. Theindustry is working with the government at all levels tohelp assure that the environmental and economic benefitsare fully realized by Malaysians, their communities andthe nation.The partners● Exxon Corporation● the Esso Companies in Malaysia (affiliates ofExxon Corporation)● the Government of Malaysia● Petronas● local communitiesThailandMTE R E N G G A N UALKertehKuala LumpurPort DicksonSumatraS O U T HAYC HI N A S E ASIASarawakKalimantanPhilippinesSulawesiThe resources that large oil companies have brought toMalaysia—including technical skills and experience inmanaging large, high-risk investments and strong financialassets—are playing an important role in enabling Malaysiato join the ranks of industrial nations. Tan Sri Datuk AzizanZainul Abidin, Chairman of Petroliam Nasional Berhad(Petronas), says ‘Working with major oil companies hasenabled our people to gain knowledge and achieve transferof technology that lets us go forward in the development ofour oil and gas resources. Also this relationship will assistPetronas to master petroleum technology sufficiently tooffer its services elsewhere in the world through PetronasCarigali Sdn Bhd, its exploration and production subsidiary.’Developing a local workforceThe Esso workforce in Malaysia is currently 2700 employees,but substantial additional jobs are created through businessopportunities for Esso contractors, dealers, marketers,supplier and auxiliary industries. Furthermore,‘Malaysianization’ of the work force is well advanced; sincethe 1980s, the proportion of Malaysian nationals in Esso’sworkforce has increased from about 70 to more than 95 percent, with more than 100 Malaysians holding seniorpositions. Moreover, the company sends between 20 and 30employees a year on foreign assignments in various Exxonaffiliates throughout the world to learn new technology andfor management development.Developing local support industriesThe expansion of oil and gas exploration and production hasalso fostered the development of steel fabrication in Malaysiaas local companies build structures such as platforms anddecks to support offshore petroleum operations. Localfabrication has saved foreign exchange because the oil andgas platforms used in the Malaysian waters of the SouthChina Sea were previously built in Japan, South Korea andIndonesia. The Government embarked on a plan to build theplatforms locally by encouraging large Malaysian companiessuch as Sime Darby to move into heavy industry. Essoparticipated at both ends—with a special training programmeto equip young welders with international level skills and asthe ultimate user of the Malaysian-made platforms.Comments Tunku Tan Sri Dato Seri Ahmad Yahaya,Executive Deputy Chairman for Sime Darby Berhad, ‘As a34

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study SixEsso in MalaysiaPerwaja SteelMill in Malaysia:the arrival ofnatural gas hasled to a newprocess of turningiron ore into highgrade steel.Esso hasdeployedsophisticatedcomputer andcommunicationtechnologies toits workforcein Malaysia.contractor for Esso, we have always found the company to bevery demanding in its safety, quality and deliveryrequirements, but essentially fair and reasonable. In facthaving to meet Esso standards has helped us enormously.They have encouraged us to reach for the highest possiblestandards, and we have responded and benefited from theexperience.’ In less than ten years a new industry hasblossomed: Malaysia now builds all its own platforms.Developing local expertiseEsso is helping to educate Malaysians by transferringhighly sophisticated technology and operating systems.The Powerformer 2 project at the Port Dickson Refineryis a case in point. Most of the technology originatedoverseas, but it is installed and then applied in such a waythat future generations of Malaysians can build on the‘high-tech wedge’ to create their own systems andTHE BACKGROUNDFor centuries Malaysia was principally anagricultural economy supplying spices toAsia and Europe as early as the 16thcentury. In 1893, an Exxon predecessorcompany entered Malaysia, initially to sellkerosene for illumination. Esso has had abusiness presence in Malaysia ever since.Currently, the Esso-relatedcompanies in Malaysia include EssoProduction Malaysia Inc., Esso MalaysiaBerhad, Esso Borneo Sdn Bhd and ExxonChemical Sdn Bhd, collectively carryingout a full range of petroleum, chemicalsand gas business in the country. For all ofits 100+ years in Malaysia, Esso has beena successful marketer of petroleumproducts. Reflecting this success, threedecades ago the company built a refineryon Malaysia’s west coast. Then, in the late1960s, Esso discovered the first of aseries of oil fields off the coast of theMalay Peninsula that has brought thecompany the distinction of beingMalaysia’s largest oil producer. Esso isalso a major natural gas producer andmarketer, and is a major supplier toMalaysia’s Peninsular Gas Project which isproviding natural gas supplies the lengthof peninsular Malaysia and into Singapore.Malaysia’s petroleum industry wassignificantly changed by the discovery ofmajor offshore oil and gas fields over thepast quarter of a century. ‘By developingthe oil and gas industry in this country,’explains Tan Sri Datuk Azizan ZainulAbidin, Chairman of Petroliam NasionalBerhad (Petronas), ‘we are assuring theavailability of energy we need to movetowards our Vision 2020. Unless we haveenough secure energy sources, we will notbe able to achieve the quality of life thatwe want and expect.’ ‘Vision 2020’ is thename Malaysia has given to its nationaldrive to concentrate its human, financialand natural resources on the goal ofcompeting successfully with industrialnations by the year 2020.35

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study SixEsso in MalaysiaThe Stripe Force van at one of the more than 330 Malaysian Esso service stations: the Stripe Force Team is there to ensure that all fuel products meet therequired quality standards.applications. Furthermore, Esso’s Malaysian employeesare taking advanced software technology and developing asuite of applications that will help lead the company intothe next century. And the technology flow is in bothdirections.Technology and expertise are also being transferred atthe marketing end of the operations. At the Esso RetailTraining Complex in Kuala Lumpur, new service stationdealers are taught a variety of skills: how to keep stock ona wide range of products from diesel fuel to soft drinks,how to prepare the station accounts, how to place ordersthrough the Esso computer network and, most important,how to serve customers well. Another way that Esso takestechnology into the field is the ‘Stripe Force’ van whichmakes regular visits to each of the more than 330 Essoservice stations in Malaysia. The Stripe Force ensures thatall fuel products meet the company’s qualityspecifications.Community involvementEsso is helping secondary students learn about economicsand the business world through the after-school ‘Esso YoungEntrepreneur Program’. Guided by Esso employees who actas advisors in management, finance, production andmarketing, the students learn to handle all aspects of runninga business. About 1000 children from 31 schools haveparticipated in the project.Esso contributed RM1 million (US$400 000) to theNational Library for the building of a HypermediaResource Center—a facility dedicated to introducingchildren to state-of-the-art technology. The centre willenable children to interact with computers and learn byexperimenting and creating.Esso continues to invest in Malaysia. It has programmesin place that will serve both the company and the country,striking the right balance between business and socialresponsibilities.36

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study SixEsso in MalaysiaThe Terengganu storyThe large oil and gas reserves in the Malay Basin lie off thecoast of the Malaysian State of Terengganu, one of the newdeveloping areas of the country.In the mid-1970s, as offshore petroleum operationsexpanded, the federal and state governments decided topromote a number of oil-related developments along the eastcoast to provide a stimulus to its economy. In 1978, whenEsso’s offshore field began producing its first oil, thegovernment encouraged Esso to move its productionoperations to the State of Terengganu from the capital KualaLumpur some 360 km away.Esso Production Malaysia Inc. (EPMI) created itsOffshore Division specifically to run upstream operations onthe east coast. With Esso participation in planning anddesign, the Terengganu State Economic DevelopmentCorporation then built a modern complex with homes,schools, a medical clinic and office building at Kerteh, a 400-year-old fishing village. On completion, the infrastructurewas leased to Petronas for 30 years and named RantauPetronas. Some 300 of EPMI’s 2700 employees now live inthis seaside community.Seismic mapping is a technology that is being transferred to Malaysianexperts. The data are first collected from scans of the ocean floor and thenanalysed by engineers and geologists at Esso centres.High technology is reaching the streets of Malaysia, partly as a result of theuse of point of sales terminals at Esso service stations. Dealers are trainedin the use of both hardware and software at the Retail Training Centre inKuala Lumpur.‘It was a social and cultural challenge for a big oil companyto move into a small rural village,’ recalls Leon Smith, formermanager of EPMI’s Offshore Division. ‘We have worked hardto meet our obligations as a good corporate citizen to createjobs and to protect the environment.’ Esso built libraries inTerengganu for communities that had never had them, anddonated buses to serve as mobile libraries for rural villages.Family members of Esso employees volunteer to run thelibrary and to raise money for the purchase of books.As a consequence of oil development, Terengganu hasbecome one of the nation’s most prosperous states. In 1970,Terengganu’s gross revenue amounted to RM100 million(US$40 million). By 1992, boosted by petroleum, its grossrevenue had risen 60-fold. The number of people employed inmanufacturing and construction tripled, and nearly 3500people from Terengganu found work directly with oilcompanies. The state also doubled its network of paved roads.Electricity and water systems were installed in numerous areas.School systems were built and scholarships were provided forstudents to attend universities both in Malaysia and abroad.Health services were expanded and improved. For futuregenerations, Terengganu sets aside half its oil revenues in aHeritage Fund that invests the money elsewhere in the nation.‘Our hope for a higher quality of life is interlinked withpetroleum,’ says Dato Seri Amar Di Raja Tan Sri Haji WanMokhtar, Chief Minister of the State of Terengganu.37

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGCase Study SevenImperial Oil in northern CanadaAboriginal populations in Canada’s remote northern areas,just south of the Arctic Circle, are benefiting from carefulplanning during the expansion of oil production in theregion—top priorities are training, the creation of newbusinesses and the preservation of traditional lifestyles.The partners● Imperial Oil Resources Ltd*● Government of the Northwest Territory (GNWT)and the Dene Nation● local communities* Imperial Oil Limited is a partly-owned subsidiary of ExxonCorporation. Downstream operations are conducted under the ‘Esso’banner. From 1972 to 1992, the company’s upstream resourcesoperations were conducted through a wholly-owned subsidiary companyknown as Esso Resources Canada Limited.A R CTI C OAlaskaUSAC E A NM A C K E N ZRI V E RNormanWellsI ECanadaUnited Statesof AmericaHudsonBayThe Norman Wells oilfield is the most northerly producingoilfield in Canada, located about 200 kilometres south of theArctic Circle, at the town of Norman Wells (population 625)in Canada’s Northwest Territories (NWT). Located on thebanks on the Mackenzie River, Norman Wells is accessible insummer by air or river barge only; in winter, by air or ice road.Neighbouring communities less than 200 kilometres awayinclude Fort Franklin (population 550), Fort Good Hope (600),Fort Norman (375) and Colville Lake (75). Local populationsare predominantly Aboriginal—chiefly Dene bands. TheNorman Wells oilfield is the largest industrial activity in theregion, and while there has been other development in recentyears, such as mining, the Aboriginal people in surroundingcommunities still maintain their traditional lifestyles, whichrevolve around seasonal hunting, fishing and trapping.HistoryOil was discovered at Norman Wells in 1920 by the firstexploration crew sent into the Canadian North by ImperialOil Limited. A small refinery was built by Imperial in the1920s to produce gasoline and diesel fuel for the local market.As mining activity grew, a larger refinery was built in 1939.The refinery continues to operate today, processing anaverage of 500 cubic metres of oil per day into refinedproducts for local markets. The Norman Wells field wasexpanded in the early 1940s to supply the wartime CANOLpipeline to the Yukon. Increasing southern Canadian demandfor crude oil led to a major expansion of the field in the 1980s.The expansion projectThe $530-million Norman Wells Expansion Project initiatedby Imperial in the mid-1980s increased production from thefield 10-fold and will enable Imperial to recover more than 40per cent of the estimated 100 million cubic metres of original‘Esso is better organized to send apprentices to school than anyother company I’ve worked for. This job gives me experiencewith construction, new installations and wiring, not justmaintenance. I ask questions and the journeymen here taketime to explain things.’Albert Masuzumi (Fort Good Hope)apprentice electrician, Norman Wells38

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study SevenImperial Oil in northern Canadaoil-in-place. The expansion project included the drilling ofmore than 200 wells, the building of six artificial islands in theMackenzie River (which is several kilometres wide at thatpoint), and the completion of more than 1000 kilometres offield production and transportation pipeline, linking the fieldwith transportation infrastructure in southern Canada.Imperial Oil Resources Limited is sole operator of thefield, with the Government of Canada holding a one-thirdnet profit interest. Today, Norman Wells produces about5300 cubic metres of crude oil per day and employs about100 people, 20 per cent of whom are local Aboriginals.Socio-economic developmentImperial believes it has an obligation to share the wealthcreated by resource development with local Aboriginalpeople through employment and business opportunities.When the expansion project began in the 1980s, Imperialcommitted itself to a policy of working with government andlocal communities to maximize employment and businessopportunities to Northerners in the Mackenzie River Valley(locally known as the Sahtu region). This commitmentextended to both the expansion project and to permanentoperation of the oilfield.Imperial believes development of a vibrant oilfieldservices sector in Norman Wells also enhances the viabilityof future Northern oilfield operations. To that end, thecompany developed a socio-economic action plan to ensurethat the expansion project would create real and lastingeconomic benefits for the people of the North. The planfocused on two major areas—employment and training, andNorthern business development.Employment and trainingA number of initiatives were undertaken to maximizeNorthern employment opportunities through training andhiring practices. These included:● establishment of a Northern employment andconsultation office in Norman Wells;● working with the Government of NWT employmentdepartment and local Band Councils in the Sahtu to assistin recruitment of Northern employees;● development of a rotational work arrangement to allowNorthern employees to continue living in their homecommunities and maintain traditional lifestyles;A winter view of Norman Wells—the town, oilfield and MackenzieRiver. In the background are the Mackenzie Mountains. Several of theartificial production islands built in the Mackenzie River are visible.●●●specific hiring practices designed to maximizeopportunities for Northerners;cross-cultural training and support to supervisors andemployees;Aboriginal employment content targets and creation of aNorthern Development Program to train and equipNortherners with skills vital to permanent employment.As a result of project-based initiatives, nearly half of the2350 work years of employment created by the projectbetween January 1982 and June 1985 was worked byNorthern residents. Initiatives related to the on-goingoperation of the oilfield have increased Northernemployment from less than two per cent prior to theexpansion project to 20 per cent today. Imperialacknowledges that the company’s progress in increasing‘Morale is good and there is a sense that we are native-ownedand operated. There are more native guys here, so we feel morerelaxed. The key to a good crew is everyone working together.It’s nice to have Esso here with us—they’re sharp people. Wenative people used to just watch things from the riverbank. Nowthis is a good place for a young man who wants to learn.’Rod Kakfwi (Fort Good Hope)Shehtah Drilling employee, 198439

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study SevenImperial Oil in northern CanadaNorthern Aboriginal hiring and training has been slow.But progress has been made, and efforts continue today.The Norman Wells oilfield is a complex, technicaloperation which demands a high level of training and skillson the part of the people who operate it. The company iscommitted to helping Northerners acquire the necessaryskills through programmes such as the NorthernDevelopment Program and a scholarship programmeaimed at helping students from the Sahtu region pursuecareer paths in the petroleum industry. Throughprogrammes such as these and preferential hiring practices,Imperial intends to continue increasing its Northernemployment content.Business developmentTo develop Northern business capability to support oilfieldoperations and ensure Northern benefits withoutjeopardizing cost, schedule, quality, safety or environment,the company developed specific guidelines and businesspractices to maximize the participation of local businesses.These included:● providing business advice and assistance to encouragedevelopment of new local companies with potential forlong-term economic viability;● working with local businesses to ensure they are aware ofopportunities, bidding procedures, safety requirementsand invoicing;● Northern content adopted as a specific determinantwithin ongoing contracting procedures;● encouraging all contractors to adopt and follow thesepolicies and procedures as they pertain to Northernbusiness and employment.‘People in all the communities have a hard time finding jobs.The contracts with Esso give us the opportunity to go intobusiness. The way it’s set up, we don’t have the same people onthe jobs all the time. The workers will be able to get out into thebush, too. It’s good.’Community involvementThe significant growth in Norman Wells brought about bythe expansion of oilfield operations might have strainedexisting facilities and services had it not been for theincreased support in such areas as town planning, education,social services and recreation. Imperial has been extensivelyinvolved in a number of improvements which have madeNorman Wells a better place to live. These include:●●●Chief George BlondinFort Franklin Dene Corporation, 1982building a new school, recreation facilities such as ahockey arena and curling rink, a new housing subdivision,street and road improvements, a new telephonesystem, and a museum;ongoing community partnerships and servicearrangements; for example, Imperial generates electricityand supplies natural gas for the town of Norman Wells;an ongoing agreement with the town of Norman Wellsto provide joint fire protection services;Key contracts awarded to native Northern businessesincluded drilling and well servicing, refuse managementservices, security services and office leasing. In 1983, a newdrilling and well servicing company called ShehtahDrilling was formed, a joint venture of Imperial Oil, theMetis Development Corporation and the Dene Nation.Shehtah continues to operate successfully today, providingall drilling and servicing work required by Imperial, as wellas other upstream operators in the Sahtu region. Thecompany owns and operates one drilling rig and twoservice rigs.Local Aboriginal contractors played a major role in the expansionproject, especially in the building of the artificial islands.40

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study SevenImperial Oil in northern Canada●community donations, sponsorships and other outreachprogrammes to surrounding communities, such as theprovision of computers for schools and contributions torecreation facilities.EnvironmentThe Mackenzie River is one of the largest in North America,an important transportation link for the Sahtu region and avital feature of the biosphere. Imperial regards environmentalprotection as critical to present operations and futuredevelopment in the North. The major environmentalconcerns expressed during the impact assessment phase of theexpansion project were related to the risk of oil spills.Environmental protection measures, pertaining to theexpansion project and on-going operations, include:●●●●●●●●●man-made production islands in the river located inshallow water and near shore to minimize their impact onriver traffic and fish migration;islands and other production facilities specially-constructedto minimize potential for oil or produced water spills;on-shore facilities specially-built to prevent damage topermafrost;extensive use of directional drilling techniques tominimize surface disruption;cooling crude oil entering the pipeline at Norman Wellsto below 0 °C, thereby avoiding permafrost damage;extensive biophysical studies to minimize the impact ofoperations on varied flora and fauna;detailed emergency response and contingency plans toprevent/minimize risk of spills or other environmentalincidents;Imperial maintains local Oil Spill Containment andRecovery (OSCAR) units and other spill containment/recovery equipment;agreements with the Coast Guard and other operatorsprovide access to additional equipment and personnelwhen required.Overall impactThe town of Norman Wells experienced a significant impactfrom the expansion of the oilfield, primarily as a result ofpopulation growth, development of services andinfrastructure, and increased personal income flowing intoAn Aboriginal employee monitors the operation of production wells fromthe oilfield’s Central Processing Facility.the community because of wage employment.Effective consultation and cooperation was, and continuesto be, an essential element in mitigating and managingcommunity impacts effectively. Direct outcomes of effectiveconsultation include ongoing employment and businessprogrammes, formation of Shehtah Drilling, and an ongoingdialogue between Imperial and surrounding communities,covering a broad range of subjects related to environmentalprotection. Imperial continues to work closely with the townand with neighbouring communities in areas such ascommunity planning, facility construction and public safety.Initiatives such as rotational work schedules, transportationassistance, seasonal employment opportunities and specialleaves during the hunting season have supported therealization of individual aspirations. These initiatives enhancedthe ability of individuals to pursue their traditional lifestyles byproviding additional income to support hunting, fishing,trapping and other activities associated with living on the land.At the same time, the number of personal optionsincreased for those interested in pursuing petroleumindustry-related careers. Also, employment experience andleadership skills gained through industry training and workexperience can be applied in local communities.41

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGCase Study EightMobil in IndonesiaDevelopment of the Arun natural gas field in Indonesiahas involved training, conservation, capacity building andtechnical cooperation.The partners● Mobil Oil Indonesia● Pertamina● local communities● the Government of IndonesiaMobil’s cooperative effort with Pertamina, the IndonesianNational Oil Company, in the development of the Arun GasField in Northern Sumatra is an example of both technologytransfer and capacity building.On 26 December 1967 Mobil Oil Indonesia (MOI) wasincorporated as a production sharing contractor forPertamina. In 1971, Mobil discovered the Arun natural gasfield, one of the world’s biggest and an important find bothfor Mobil and for Indonesia. After Pertamina successfullyfinalized a long-term LNG sales contract with Japanesebuyers in 1973, construction began at both the Arun Fieldand the P.T. Arun LNG plant, 35 km away at Lhokseumawe.LhokseumaweSumatraKalimantanSulawesiJIaN DvaON E SI AAustraliaIrianJayaPapuaNewGuineaResponsible project designThe needs of the local population were taken into account inthe development of both the Arun Gas Field and the P.T.Arun LNG plant. At Arun, there are five discrete areascarved from the surrounding rice paddies and villages: thenerve centre called Point A, and four producing clusters.Point A contains the administrative buildings, warehouses, anairstrip, hangers, an electric power plant, and the field’scommunications systems, including the first private SatelliteEarth Terminal in Indonesia.Hydrocarbons are produced from the four clusters, eachof which functions like an offshore platform with wellheads,production facilities and control rooms concentrated in aconfined area. Each cluster can accommodate up to 20 wellsdrilled directionally. This cluster approach minimizes the useof cultivated land, centralizes process equipment, and reducesthe distance that high pressure gas must travel between thewells and Point A.While most of the gas produced at Arun is liquefiedand exported, the field also supplies gas to two fertilizerplants and a local paper mill, creating additional jobopportunities.Mobil has a policy that when it comes into a country, itintends to stay there. To support this, Mobil always tries tobecome ‘a good corporate citizen,’ which means literallygiving back some of the profit it receives to the people ofthe country where Mobil operates. The company paysspecial attention to training local people, to environmentalprotection and to capacity building to support the localinfrastructure.42

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study EightMobil in IndonesiaIn a technology first, Mobil combines oversized well piping, or ‘big bores’,with a reservoir pressure maintenance programme to boost gas productionfrom Indonesia’s Arun field—at less cost.Indonesia’s gas era ‘opened with a jet engine’s roar,’ when Mobil firstdrilled the Arun field in 1971.By 1993, some 790 employees—including managers,engineers, geologists, geophysicists and accountants—hadtaken part in these internal programmes. Some Indonesianprofessionals and managers also receive on-the-jobtraining in the United States and at other Mobil affiliatesworld-wide. By 1993, Mobil had also sponsored 33Indonesian employees in university study—30 in theUnited States, mostly in technical areas, and three in anIndonesian MBA programme.The importance of trainingMobil has stressed technology transfer and training from itsearliest days. This effort has been highly successful. In 1993,95 per cent of MOI’s more than 1300 employees wereIndonesian. At the P.T. Arun LNG plant, only 26 of thenearly 2100 employees are non-Indonesian.To achieve this high rate of Indonesian participation inthe work force, Mobil runs an extensive series of trainingcourses. More than 400 Indonesian high school graduateshave been trained in eight apprenticeship programmes.These programmes develop the skills needed to operate andmaintain the high technology equipment at the Arun Field.In addition, Mobil runs professional, technical,management and communications training programmes.A young Aceh resident gets a medical check-up from a company doctor.43

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study EightMobil in IndonesiaProduction facilities at the Arun fieldA typical state school for employees at LhokseumaweIn 1993, Mobil expanded its training effort to Pertamina,undertaking to train 100 Pertamina professionals over a twoyearperiod in the latest environmental, health and safetytechnology. These professionals spend six months in theUnited States, receiving a combination of classroom and onthe-jobtraining.Protecting the environmentMobil’s involvement in Indonesia continues to grow, withexploration activities throughout the country. Environmentalawareness is an integral part of these activities. For example,in the remote tropical rain forests of Irian Jaya, Mobil hasbeen able to perform surface geological surveys withminimum disruption to the living forest and wildlife, usingonly surface observations and aerial surveys; no seismicsurveys were conducted. The drilling programme in IrianJaya was designed to minimize land usage. No road was cutto the drilling site and only enough land was cleared toprovide a helicopter landing area. Helicopters were used totransport personnel and equipment to the site. As drillingoperations were completed, Mobil implemented a siterestoration programme that promotes the natural regrowthof the forest at each drill site. All drilling equipment wasremoved, mud pits closed and soil restored whereverpossible. In 1989, as part of its effort to preserve nature andthe environment in Indonesia, Mobil published IndonesianEden, a wildlife book by Michael Griffiths. It has been ratedas one of the best and most articulate books ever publishedon Indonesia’s rain forests.Liquefied natural gas (LNG) from Indonesia’s Arun field is loaded onto atanker. As a world leader in the production of LNG, Mobil is building onits experience with new ventures like those under way in QatarCapacity buildingAs part of its capacity building effort in the Arun Field area,Mobil is helping develop the country’s infrastructure andworkforce. Mobil has established two civic mission clinicswhich serve more than 110 000 people from the surroundingvillages. Some of the 250 daily visitors, from as far as 50 kmaway, begin to gather at these clinics at 4 a.m. Clinic staff44

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study EightMobil in IndonesiaAn issue of Mobil’s international newsletter, Mobil Worldalso conduct field visits, vaccination drives and healtheducation classes in local schools. These efforts have beensuccessful in wiping out neonatal tetanus and death frommeasles in the Arun area. A local nursing school and amedical school in Medan use the clinic as training facilitiesfor student nurses and paediatric residents.In other local projects, Mobil has drilled water wells,built and repaired roads and bridges, and assisted in theconstruction of schools and mosques.Mobil is deeply involved in the support of Indonesianeducational, environmental and cultural programmes; MOIworks closely with Indonesian universities and otherinstitutions of higher education to provide educationalassistance and scholarships, and has established scholarshipprogrammes for fourth-year professional students in sixIndonesian universities. The company has also assisted inestablishing a secretarial school, where local women havedeveloped skills enabling them to join the work force.MOI supports one of the Indonesian governmentprogrammes on Human Resources Development bycontinuously assisting two major universities. With thiscontinuous support, the universities are able to upgrade theirlectures and staff by sending them to higher level educationinstitutes, locally and abroad.Trainees at a Mobil secretarial school45

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGCase Study NinePT Caltex Pacific IndonesiaThose responsible for developing Indonesia’s oil and gasresources are playing important roles in developinghuman resources, protecting the environment andextending the life of finite resources.The partners● PT Caltex Pacific Indonesia (CPI)● Amoseas Indonesia (AI)● Pertamina● Chevron● Texaco● the Government of Indonesia● local communitiesDuriMinas KalimantanRumbaiSulawesiSumatraJakartaBandungJIN DSurabayaYogyakartaavaO NE SI AAustraliaIrianJayaPapuaNewGuineaDeveloping alternative energy sourcesCaltex Pacific Indonesia (CPI) and its shareholders helpIndonesia address a key national priority: meeting therapidly rising demand for energy, growing at 7.5 per centper year. As oil and gas production levels off, Indonesiafaces the prospect of becoming a net importer of oil by theyear 2005.CPI’s contribution is two-fold. First, petroleumproduction in Indonesia has been increased—by as much assix- to seven-fold in some fields—by employing enhanced oilrecovery technologies, originally developed by itsshareholders for their US operations, to CPI’s Duri andMinas fields. The key to this arrangement is theGovernment’s willingness to provide the security of a longterm,production-sharing contract, recently extended to theyear 2021. Meanwhile, CPI and its sister company, AmoseasIndonesia (AI), have been spending more than US$50 millionannually exploring for new oil and gas reserves.Secondly, AI is also helping the country develop animportant source of alternative energy with great potentialto meet the demand for electrical power, now growing atmore than 10 per cent annually. AI is harnessinggeothermal energy to generate electricity. Recent changesin Indonesian law encouraging the privatization ofelectricity generation provide the incentives of lower netoperating tax rates and waiving of import taxes on essentialcapital equipment.The multiplier effect of technology transfer is illustratedby AI’s geothermal field at Darajat in West Java, whichsupplies the steam to power a 55-megawatt electricitygenerating plant operated by the state power company. AIplans to expand its geothermal operations, drawing on thetechnology, experience and skills gained from CPI’soperations in Sumatra. There the oil company produces350 megawatts of electrical power for its own use and haslong experience in steamhandling (CPI is the third largestelectrical power producer in Indonesia. Its Duri steamfloodenhanced oil recovery project is the largest of its kindin the world.) AI can also draw on the expertise of CPI’sshareholders from their Kern River enhanced oil recoveryoperations in California, and in generating electric power inthe United States. The shareholders’ experience inmanaging and financing such major undertakings alsobenefits AI.46

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study NinePT Caltex Pacific Indonesia‘… A developing nation needs all the social and economiccompetencies that are so plentiful in the developed world. Andalthough these are the very competencies that the governmentsof developing societies are ill-equipped to disseminate—evenwith international aid—they are precisely the competencies thattransnationals possess in abundance and provide, teach, andencourage … Today [transnationals] need far more than adeveloping nation’s mineral resources. They need skilled labour,consumer markets, financial and commercial partners, andcontinuing business opportunities into the near and distantfuture. In other words, they need development. And their needis urgent, whether they acknowledge it or not.’Julius Tahija, Chairman EmeritusPT Caltex Pacific Indonesia‘Swapping Business Skills for Oil’Harvard Business Review, Sept.-Oct. 1993Environmental protectionEnvironmental conservation is an important priority of theGovernment of Indonesia, CPI and AI. One proof of CPI’spublished commitment ‘to be recognized as a leader inenvironment, health and safety among all Indonesianproduction-sharing contractors’ is the company’s trainingprogramme in these areas. Ninety-five Indonesian oil and gasprofessionals from Pertamina, government agencies, and CPIare trained at Chevron and Texaco facilities in the UnitedStates. Developed at the request of Pertamina, thecomprehensive and intensive four-month course includeshands-on and classroom study. Participants learn the latesttechnology and practices in operational safety, risk and healthmanagement, water and air quality, ground water protection,hazard identification and emergency preparedness.CPI is helping to safeguard the Indonesian rain forest byusing directional drilling techniques to minimize forestclearing, reinjecting produced water, and reforesting andreplanting to control erosion. In Sumatra, it has intensified aprogramme to remediate operating areas. Drill sites arebeing returned to their original state by planting indigenousspecies, and environmentally-compatible vegetation is beingplanted along access roads. CPI’s Ecology Clubs at its campsin Rumbai, Minas and Duri have established forest natureparks that preserve environmentally-sensitive areas of forestnear company camps for employees, their families andcitizens of Riau Province. CPI’s environmental protectionpolicy calls for full compliance with local and nationalstandards, and to self-regulate where standards do not exist.For example, CPI is committed to re-injecting 85 per cent ofproduced water by 1998. It has also taken other steps toprotect the Indonesian rain forest, including developing newdesigns for its gathering stations, applying directional andTHE BACKGROUNDThe economic and social development ofhost countries is often intertwined withthe business fortunes of transnationalcorporations and their local affiliates. Thisis evident not only in technical andbusiness areas but also in community andhuman resource development andenvironmental protection. At the heart ofthis partnership is technology cooperation,characterized as much by the building ofself-sustaining economic and socialcompetence as by the flow of technology,skills and financial resources.PT Caltex Pacific Indonesia (CPI),Indonesia’s largest producer of oil, worksclosely with Pertamina, Indonesia’snational oil company, and CPI’sshareholders Chevron and Texaco. Thecompany focuses on projects that meetIndonesia’s energy priorities and thatadd value for both the government andCPI’s shareholders. As the largestproduction sharing contractor forPertamina, CPI produces 720 000barrels of oil a day, approximately halfthe nation’s production.The company makes a significantcontribution to Indonesia’s economic andsocial development, meeting obligations tolocal communities, its 6400 employees and18 000 contractor employees, the nation,and all parties with a stake in it.The combination of business and socialobjectives is a feature of the public/privatepartnership in Indonesia. Its success stemsfrom the Government of Indonesia’scommitment to providing the economicand political framework conducive toprofitable operations. The frameworkincludes a stable political and economicsystem, a transparent and equitable legaland financial structure, soundenvironmental laws and regulations, andguaranteed movement of necessarypersonnel and materials.47

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study NinePT Caltex Pacific IndonesiaSkilled analysts study results from ‘logging tools’, which entails loweringsensitive electronic monitoring devices into wells to obtain informationabout underground geological formations. PT Caltex Pacific Indonesiaemployees receive an average of 110 hours training a year.horizontal drilling to reduce the need for road and siteclearings, and conducting carefully designed seismic surveys.The company and its shareholders are involved in manyinitiatives to study and safeguard tropical rain forests and theirunique flora and fauna. In 1979, CPI petitioned theGovernment of Indonesia to make the Zamrud Lakes, whichrest on top of an important oil discovery, a nature reserve.Today, CPI uses directional drilling to tap the oil field fromonshore. Other initiatives include support for a biodiversityproject on the island of Sulawesi, a rain forest exhibit andanimal hospital at the Ragunan Zoo in Jakarta, rain foreststudies by experts from the New York Botanical Gardens inIndonesia, a clinic for rehabilitating orangutans in Kalimantanand global conferences in Indonesia on safeguarding great apes(1991), preserving rain forests (1993), and protecting theenvironment (1994). In 1991, CPI’s shareholders were keycontributors in developing the Oil Industry Operating Guidelinefor Tropical Rain Forests (published by E&P Forum).Human resource developmentFormer US Ambassador to Indonesia, Paul Wolfowitz, oncecalled CPI ‘a very big university on a vast campus,’ inrecognition of its commitment to training. This is reflectedby the small number of expatriate employees seconded fromits shareholders. In 1951, 200 of CPI’s 1400 employees werefrom its shareholding companies. Today, there are only some125 non-Indonesians out of a total CPI workforce of 6400.Nearly all CPI senior and intermediate managementpositions are held by Indonesians.CPI conducts a wide range of programmes to teachemployees basic skills, technical expertise and managementdevelopment. In 1993, for example, CPI employees received700 000 hours of training, an average of 110 training hoursper employee. CPI has been a leader in innovating suchprogrammes as ‘hot line’ maintenance training, whichenables its technicians to repair electrical cables withoutdisrupting the power supply to local oilfields. Its expatriatenationalmentor system has promoted technology transferthrough special training. For example, skills acquired bynational professionals in operating state-of-the-art 3-D and4-D seismic technology have become important resources forfinding new hydrocarbon reserves.In 1993, 25 CPI employees took part in on-the-jobtraining programmes in the United States, Canada, Australiaand the United Kingdom in a number of disciplines,including exploration, construction, petroleum engineering,drilling, computers, finance, accounting, human resources andexternal relations. Chevron and Texaco also host a number oftechnical visits by CPI employees to their facilities every year.Increasingly, training is from one Indonesian to another,often from one generation to another, sometimes in thesame family. Many CPI professionals, such as seniorengineers and senior geologists, are second generation CPIemployees. Their fathers may have been clerks or fieldlabourers when CPI resumed operations after WorldWar II. Educational scholarships for employees and their‘Technology coooperation between oil companies within andoutside Indonesia has significantly improved the managerial andoperational capabilities of Indonesians over the past two decades.’‘Technology transfer and cooperation has been an effective wayof achieving mutual goals and benefits for both the Indonesiangovernment and for the oil companies.’‘Cooperation based on mutual benefit and trust has resulted inconsiderable cost reduction, and the effective, efficient and timelycompletion of many projects.’Ir Soepraptono Soeleiman,Expert Staff, Earth, Oil and Gas, Department of Mines and Energy,Secretary, Pertamina Board of Commissioners48

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study NinePT Caltex Pacific Indonesiafamilies have enabled many of today’s professionals tograduate from Indonesian or overseas universities and thenassume key positions in the organization.Infrastructure developmentIn the 1950s, the soil in CPI’s operating area in Sumatra’sRiau Province could not support the cultivation of rice, whichhad to be imported. To reduce this dependence, CPI builtcanals, brought in agricultural experts from the Philippines,and sent Indonesians overseas to agricultural schools. Withina few years, assisted by other CPI programmes to build roadsand improve infrastructure, many farmers were selling rice tothe company and exporting it to other regions.CPI has been working with the Indonesian Governmenton infrastructure development since 1941, when it built thefirst road linking two operating areas on Sumatra, Rumbaiand Minas. CPI was instrumental in linking the west and eastcoasts of Sumatra in the late 1950s. The Siak River Bridge atPekanbaru, built by CPI in 1977, serves as a symbol of howSumatra is being drawn together economically.With an annual US$5 million community developmentbudget, CPI provides a powerful economic stimulus,generating hundreds of jobs in local projects. The companyrecently refocused its community development effort moreprecisely on the national goal of alleviating poverty. Itsnational programme will give tens of thousands ofIndonesians access to schools and fresh water, social services,educational opportunities, job training and help in setting upsmall enterprises.Since 1971, a CPI programme has enabled employees tobuy their own homes within commuting distance of their jobs.This benefits local industries and communities, which utilizethe roads, electric power and drainage systems built or fundedby CPI. Additional benefits include company donations ofmaterials, funding and manpower to construct medical clinics,centres of worship and sports stadiums.EducationSupport for community schooling started in the 1950s,when CPI built the first senior high school near its oil fieldsin Riau. The company has since built 52 schools andsupplied them with desks, laboratories, and libraries toprovide quality education for more than 18 000 childrenfrom local communities.High technology at the wellhead—drilling operators using horizontaldrilling at a location in Sumatra. This advanced drilling techniqueminimizes impact on the environment while maximizing production.At university level, CPI provides a wide range of support.When the chemical laboratory of the Institut TeknologiBandung (ITB) was destroyed by fire in 1974, CPIcontributed several hundred thousand dollars forreconstruction, and is continuing to sponsor the institution.In addition, the Texaco Foundation has underwritten threeITB faculty members for four-year courses of study at TexasA&M, leading to a Ph. D. in petroleum engineering. It alsocontinues to sponsor programmes and projects at theinstitution in Bandung. The Yayasan Sosial Chevron danTexaco Indonesia (Chevron and Texaco Social Foundation)has also helped ITB buy computers for its science laboratoriesand provided funds for an English language laboratory.CPI assists other universities, including UniversitasIndonesia in Jakarta, Universitas Gadjah Mada inYogyakarta, and the Universitas Airlangga, Surabaya. Indoing so, it is putting into practice a basic, long-standingphilosophy that continues to guide the company: CPI mustgrow together with the community.49

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGCase Study TenShell in MalaysiaSophisticated technology is being used in Malaysia toconvert natural gas into an exportable liquid fuel,bringing large revenues and new skills to a country that isfast becoming industrialized.The partners● Shell● Mitsubishi● Petronas● the State of Sarawak● local communitiesThailandMALKuala LumpurPort DicksonS O U T HAYC HI N A S E ASKalimantanSumatraSulawesiIAMiriBintuluKuchingSaraawkPhilippinesSabahThe Shell Middle Distillate Synthesis (SMDS) plant nowoperational at Bintulu, Malaysia, is the latest in a series ofpartnership projects between Shell companies and the peopleof Malaysia that stretches back for more than 100 years.The new plant uses advanced technology to convertnatural gas, abundantly available from the Central Luconiafield offshore Sarawak, into liquid fuels of high purity. Thesefuels can also be used as components to upgrade lowerquality stock derived from conventional crude oil processing.In addition, the plant can produce high-value waxes, as wellas feedstocks for detergents and lubricants. The product mixcan be varied to meet market needs.The SMDS technology was developed at the Shelllaboratory in Amsterdam (KSLA) over a period of 20 years.After commercial and technical assessment, Bintulu waschosen in preference to sites in other parts of the world as anappropriate location for the employment of SMDStechnology in the first commercial plant.Benefits provided by the projectThe Bintulu project is a joint venture between Shell,Mitsubishi, Petronas and the State of Sarawak. Of the 330 staffwho run the plant, 244 are Malaysians, 90 per cent of themrecruited locally. Applications for positions at the plant werereceived from all parts of Sarawak, including some from‘longhouses’ deep in the rain forest. About 2000 candidateswere interviewed and 230 were selected. They were given ayear’s industrial experience at other Shell sites in Malaysia andthen intensive training on site in the new technology. They alsoattended courses at the local vocational school organized incooperation with Shell. On-the-job training continues, with acore of experienced supervisors providing support and guidancein the realities of running a modern petrochemical plant. TheSarawak Chief Minister, Datuk Patinggi Tan Sri Hj Abdul‘The training was relevant to my course, especially the heattracing. I also familiarized myself with a range of equipment.The safety aspect was another area I found useful.’Daniel Cheng, aged 20a student of the Kuching Polytechnic; his course included a semester ofindustrial training at the SMDS plant in December 199450

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study TenShell in MalaysiaTaib Mahmud, acknowledged the educational value of theproject when he officiated at the ground-breaking ceremony in1989. ‘The project,’ he said, ‘will provide tremendousopportunities for Sarawakians to learn new technology’.The ability of the process to produce cleaner ‘green’ fuelsis critically important—and in recognition of this fact, theWalter Flowers Achievement Award was presented to Shell bythe Council on Alternative Fuels at a ceremony held in KualaLumpur in October 1994. The plant itself releases fewemissions and the large quantities of water that it produces are,after biotreatment, sufficiently pure to be pumped directly intothe sea; indeed, if irrigation were needed in Malaysia, thewater produced could be applied directly to growing crops.The plant provides many other benefits. It contributes tothe advanced technology culture, like LNG, currently beingestablished in Malaysia. It injects considerable sums into thelocal economy through employment and contracts, and it alsoprovides financial help and practical advice to the communityon a range of educational, health and environmental concerns.The plant is thus contributing to Malaysia’s plans for achievingthe status of a ‘Fully Industrialized Country’ by the year 2020.‘Our association with Shell MDS goes back to 1992 whenSMDS trainees were sent to our workshop for training. Sincethen, SMDS has been involved in a number of our schoolactivities and projects. For example, through their donation of amulti-purpose welding machine, we now have eight stations forour students. In 1993, SMDS participated in our Mathematicsand Science exhibition … It’s good to see a big company like Shellplaying an active role in the future of the youth in this country.’Mr Eden bin AnnPrincipal, Vocational Secondary SchoolBintuluThe importance of technology cooperationTechnology cooperation has always been a key element inthe working partnership between Shell companies and thecountries in which they operate. Shell’s internationalmanagement structure, based on operating companyautonomy, favours technology cooperation.THE SMDS TECHNOLOGYThe SMDS process combines conventionaland well-proven technologies with anadvanced technology using a new catalyst.The first stage in the process is theproduction of syngas via thelong-established Shell Gasification Process.The second stage, the Heavy ParaffinConversion (HPC), is essentially a modernversion of the 70 year old Fischer-Tropschprocess, developed to produce liquidhydrocarbons from coal. However, theSMDS process uses a much more activeand selective Shell proprietary catalyst. Thefinal stage converts the paraffins intomiddle distillates and chemical feedstocks.Middle distillates, including gasoil(diesel) and kerosene, were chosen as thepreferred end products because they werefelt to have wider market potential. TheySimplified process flow schemenatural gasSGPHPSHMUHPCHGUWPUSGPsynthesis gasShell Gasification ProcessHeavy Paraffin ProcessHydrogen Manufacturing UnitHeavy Paraffin ConversionHydrogenation UnitWax Production UnitHPSare extremely clean; they contain nosulphur, nitrogen or aromatics; and theyhave good combustion qualities. They areideal blending components for upgradingtraditional products to meet high qualityproduct and environmental standards.Other products include naphtha, normalHHMU4 -H 2H 2HPC +distillationfacilitiesHGUdistillationWPUnapthakerosenegasoilparaffinswaxwaxwaxparaffins and several wax grades. The planthas a capacity of 500 000 tonnes per yearand can vary the product mix as required.About 80 per cent of all production atBintulu is exported, mainly to Japan,Australia, the United States and Europe.51

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study TenShell in Malaysia‘The people at SMDS are very friendly. Initially, we found thetraining tough but half-way through things get better. This isthe first time that we were exposed to the gas industry. Overallthe training was good and it is a worthwhile experience for us.’Phairach Songkran, 28Cholburi Province, Thailand,one of 15 trainees from the Shell Rayond refinery who spent ninemonths at the SMDS plant, leaving in January 1995, and who hasprofited from intra-regional technology transferSarawak. The country’s first refinery—at Lutong—was builtin 1914. Shell was also the first company to explore offshoreand the first to discover oil in the 1950s.Shell companies, staffed mainly by local people, nowproduce about half Malaysia’s crude oil, and operaterefineries at Port Dickson and Lutong. They are thecountry’s biggest petroleum product retailers and theirsignificant gas interests have benefitted both Shell andMalaysia through the transfer of LNG technology.However, one important lesson has been learnt: if thetransfer is to work and the benefits are to be lasting, thenthere must be commercial realism from the beginning and allpartners must benefit from it.Of the 330 staff who run the Shell Middle Distillate Synthesis plant,244 are Malaysian, 90 per cent of them recruited locally in Sarawak.The involvement of Shell companies in Malaysia, whichhas been beneficial both to the country and the companies,dates back to 1891 when Shell Transport set up a localmarketing organization to sell lamp oil. Nearly 20 years later,in 1910, Shell drilled the country’s first oil well at Miri inFavourable environment for technology transferIt was against this background that the decision was taken totransfer the SMDS technology to Malaysia and build a plantthere. There were other good reasons.Malaysia’s natural gas reserves are three times as large asits oil reserves, and further gas discoveries are likely.Sarawak’s offshore gas fields are very prolific but there is nosignificant local market for the gas produced. To beexploited, the gas must be exported. Pipelines areimpractical. Liquefaction is one answer and the MalaysiaLNG plant at Bintulu already liquefies 1250 million standardcubic feet of natural gas per day—and that amount willshortly be doubled. The special advantage of the SMDSplant is that it offers an alternative means of exporting largequantities of gas that would otherwise be left unused.Bintulu was ideal in other respects. The necessaryinfrastructure, including a deep sea port, was already in placeto serve the existing Malaysia LNG plant, and the BintuluDevelopment Authority (BDA) was vigorously developing a52

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study TenShell in MalaysiaThe Shell Middle Distillate Synthesis (SMDS) plant now operational atBintulu, Malaysia, is the first of its kind in the world.full range of services, including roads and low-cost housing.Moreover, both in Sarawak and in Malaysia as a whole, therewas (and is) a good investment climate and an enthusiasm fortechnological cooperation.The State and Federal governments were particularlyinterested in the advantages offered by the SMDStechnology. They appreciated the rapidly increasingexport potential of its products. Many countries haveintroduced legislation to improve the quality of transportfuels and so reduce sulphur and aromatic levels in theenvironment. To do this, the blenders like to have accessto components of the purity provided by the SMDSprocess and these are not normally available fromconventional crude oil refining.And, of course, there were sound financial reasons. Overthe next 20 years, it is estimated that the plant will generaterevenue of about US$1600 million for Malaysia.‘From the experience of the Shell Middle Distillate Process,people should be aware of the importance of high and advancedtechnology. Human resources are more important than naturalresources as they can make the latter become useful.’Datuk Abang Haji Johari bin Ting Abang Haji OpengMinister of Industrial Development, MalaysiaSolving problems safelyThe plant has had its share of teethingtroubles. Although it produced its firstproduct on schedule in May 1993, firebroke out a month later in one of theunits. Thankfully, there were noinjuries and the fire was put outwithin 20 minutes by plant stafftrained in fire-fighting. The efficiencywith which the blaze was controlledwas the result of an on-goingprogramme of health and safetytraining. This programme wasrecognized a few weeks later whenDatuk Lim Ah Lek, the Minister ofHuman Resources, presented theManaging Director of the SMDSplant with a Gold Award for safety.Production resumed at the end of August and the firstshipment of 4000 tonnes of synthetic diesel oil was sent toShell’s Lutong refinery in September 1993.‘Everyone must benefit’Back in 1975, Bintulu was a sleepy village leading a ruralexistence based on fishing and farming; little had changed formany years. Since then, technology transfer has enabled thesuccessive implementation of resource-development projectssuch as the Malaysia LNG plant and, more recently, theShell MDS plant. Over the past 20 years, these gas-relateddevelopments have transformed the Bintulu district into adeveloped, educated and technologically experiencedcommunity. Though it still retains its charm, Bintulu hasbecome a ‘modern’ town.This transformation is a clear example of capacitybuilding which has been carried out in a sympathetic mannerwith regard to the local environment. Furthermore, theresulting business activity has made a significant contributionto improving the global climate through the provision ofclean energy.The SMDS plant at Bintulu is proof that technologycooperation works if the necessary conditions are met. Theseconditions can be summed up in three words: everyone mustbenefit. Successful technology cooperation is the reverse ofcharity. It is enlightened self-interest for everyone.53

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGCase Study ElevenTotal in SenegalThe consumption of fuelwood is leading to deforestationand desertification in Senegal. But the introduction ofbutane as a household fuel promises to help turn the tide.The partners● Total● Totalgaz● the Senegalese government● the European Development Fund● about 50 distribution companies● local communitiesCapeVerdeIslandsDakarS e n e g a lMauritaniaGuineaSierraLeoneLiberiaMaliIvoryCoastBurkinaGhanaThe problem of deforestationFor 20 years, Senegal has been trying to curb the loggingthat is seriously depleting the country’s forests and its limitedsupply of wood fuel. The government has also tried severalmeans of protecting the forest environment from thecharcoal burners who supply most of the fuel consumed bySenegal’s urban population.Urban households are responsible for most of the woodfueluse in the country; indeed, the inhabitants of Dakar (28per cent of the country’s population) consume 80 per cent ofSenegal’s commercialized wood fuel, mostly in the form ofcharcoal. Curbing urban domestic consumption of charcoaland wood fuel has therefore been a top priority in Senegal’senergy strategy.The government tried several solutions, includingreforestation, the establishment of plantations, theintroduction of better carbonization techniques and ofimproved household cooking stoves to make more efficientuse of wood fuel supplies, and the substitution of wood fuelsby peat, paraffin and butane. Financial constraints and lack offollow-up action meant that nearly all these efforts met withlimited success. The only measure that did producesignificant results was the government decision, taken in1974, to promote butane as a household fuel, particularly forurban households.The technologyIn Senegal, the traditional cooking method was based on athree-stone fire called Nopale (which means ‘restful’ in thelocal Wolof language). An effective butane cooker had to becheap and light enough to be easily moved about the house.‘Since 1974, the sale of these stoves has allowed much of thepopulation to benefit from gas, a modern fuel. Moreover, thebutane gas programme has helped the government reducewood energy consumption. The stoves’ supports are made bysemi-industrial companies which are contributing to theeconomic development of the country.’Mr Mamadou Dianko,Director of EnergyMinistry of Energy, Mines and Industry54

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study ElevenTotal in SenegalTHE BACKGROUNDSenegal is a small (197 000 km 2 )country in the African Sahel, borderedby the Atlantic Ocean on the west andthe Mauritanian desert to the north. Itspopulation is about 8 million, of which28 per cent live in Dakar, the capital.The country has suffered aneconomic crisis caused by fallingcommodity prices, large debts and thegrowth of the urban population dueboth to population growth and ruraldepopulation. Foreign currencyresources, which are of great importanceto Senegal, have declined dramatically.Since 1968 a series of droughtshave brought further problems,reducing the length of the rainy seasonfrom six to three months in many areas.Ground cover has been reduced fromabout 70 per cent of the country in1970 to only 45 per cent in 1990. Thenorthernmost two-thirds of the countryis, in effect, desert.These factors have greatlyinfluenced the evolution of energyconsumption.The first design made use of a 2.7 kg gas bottle. Theproblem with this design was that it was easily knocked overand, because the gas did not last long, it was often used onlyfor making tea or cooking light meals.In designing a new form of stove, Total took intoaccount the advantages of traditional cooking methods andproduced a design that was also simple to use, stable andcheap, and which would meet all cooking requirements.The design included a support large enough for a familysizecooking-pot and was based on a long-lasting 6 kg,valve type camper bottle, topped with a special burner.The cooking-pot stand was made from five elements of 1.5mm-gauge black steel, welded together. The unit cost in1993 was the equivalent of US$16. The new stove waschristened Nopale.The resultThe new gas stove is a success. It is now an everyday part ofthe Senegalese way of life, with far more urban homes(80 per cent) possessing a gas stove than a television set or arefrigerator. And whereas the stove was initially used mainlyin the preparation of light meals and for warming up food, itis now used as the principle means of cooking.Most people still use charcoal for making tea, ironing andgrilling meat—partly for economic reasons and partlybecause charcoal-grilled meat is believed to taste better. Evenso, charcoal consumption, which would have reached400 000 tonnes a year had it not been for the butaneprogramme, has been reduced by about 100 000 tonnes ayear, according to conservative estimates. On this basis, thebutane programme may already have saved as much asTop: the effects of deforestation and subsequent desertification in Senegal;centre: traditional three-stone cooking using fuel wood; bottom: mound ofwood fuel ready for carbonization into charcoal55

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study ElevenTotal in Senegal‘Technology cooperation has allowed us to diversify energysources which is a means of protecting the environment. Today,LPG is largely used as domestic fuel, in place of charcoal, andthis leads to reduced deforestation.’Mr Abdoulaye Kane,Director of Water and ForestsMinistry of the Environment and Nature ProtectionThe new Nopale stove in use in an urban home20 000 hectares of Senegalese forests. Indeed, despite theincrease in energy demand, there has been a gradual decreasein the number of charcoal furnaces in operation in Senegalover the past ten years.The change to butane cooking has meant that supplyingliquefied petroleum gas (LPG) in 6 kg bottles has become themain activity of Totalgaz in Senegal. Sales of Nopale cookinggas rose from 402 tonnes in 1983 to more than 22 360 tonnesin 1994 (equivalent to 81 per cent of all Totalgaz sales and57 per cent of the LPG used in Senegal).To meet growing demand in Senegal and to set-upoperations closer to the consumer, Totalgaz built two newbottle filling and gas storage centres—in Kaolac in 1988 andin Saint Louis in 1991. It also invested the equivalent of‘Technology transfer from our partners is extremely importantfor developing countries like ours. The oil companies are helpingus fight deforestation by introducing new equipment such ashousehold cooking stoves. We must recognize that theprofessionalism of oil companies and their facility to invest in apotential market have … minimized operating costs.’Mr Bacar Guissé,Chief of Oil Division and Coordinator of the Gas Regional ProgrammeMinistry of Energy, Mines and Industrynearly US$4 million in 1992 in the construction of a Nopalebottle depot at Mbao on the outskirts of Dakar. Thecompany’s total investment, since the beginning of the butanecampaign, is estimated at the equivalent of US$15 million.Furthermore, the butane programme has producedproductive partnerships with local people. Fifty distributioncentres for the Nopale have been set up and they run tenhorse-drawn carts for deliveries to local retailers—on top ofthe two drivers and four helpers that each centre employs ata minimum. At least 30 jobs were created during theNOTES ON THE PARTNERSTotal first established a presence in Senegal in 1947, andhas been helping to develop all stages of the energy chainever since. Its turnover in Senegal was the equivalent ofabout US$60 million in 1993. Totalgaz is the leader in theliquefied petroleum gas (LPG) market, with more than 70per cent of stocked bottles. As part of the butaneprogramme, Total developed facilities for bottling LPG,storing the filled bottles and delivering them. It alsoimported 350 000 bottles.The Senegalese Government subsidizes the use ofbutane gas and does not impose a levy on bottles oraccessories. The size of subsidy fell from the equivalent ofUS$17 million a year in 1989 to less than US$5 million ayear in 1992.The European Development Fund financed the threeyearRegional Gas Programme, from 1989–92, at a cost ofmore than US$14 million. These funds were used topurchase 90 000 gas bottles and to train workers inproducing the cooking stands.Many of the 50 retail organizations that were created toimprove distribution have become flourishing businesses.56

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study ElevenTotal in Senegalconstruction of the Mbao depot near Dakar which was builtentirely by Senegalese companies.Total has also made innovations at its two regionalbottling plants. The land for these plants was provided undervery favourable terms by local authorities. In return, Totalhas undertaken to employ only local staff (four in eachcentre), apart from two engineers. Total has options on sitesfor a further two bottling plants which will be built whensales levels in these regions warrant it.Training and jobsThe bottles and the burners for the Nopale are imported. Thecooking stand, however, can be made locally. The contractorwho made the original stands for Total was used to trainwelders in 8 of the country’s 10 regions. Total has also providedtraining for trainers in the use of the Nopale in the home.To reduce the cost of the stove and to promote LPG usewithin the regions, the European Development Fund agreedto finance training sessions for 10 metal workers per region.Eighty workers have benefited from this programme, whichDelivery of butane gas bottles by horse-drawn cartis part of the Regional Programme to Promote the Use ofButane in the Sahel, organized by the Permanent InterstateCommittee for Combatting Drought in the Sahel, with afunding of 8 million ECUs.Part of Totalgaz’ increased butane storage capacity57

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGCase Study TwelveIPIECA in the international communityIPIECA is providing a forum for the petroleum industry toexpress its views and to participate in debates concerningglobal environmental issues connected with oil spill response,global climate change, biodiversity and transportation andother global emerging issues.The partners● IPIECA● the oil industry● governments● academia and the scientific community● United Nations and other intergovernmental organizations● non-governmental organizationsIPIECA brings together a network of the most experiencedscientists and environmental experts that the oil industry canprovide. Although IPIECA was created by the oil industryfor the benefit of the oil industry, its role in internationaldebates is recognized by its partners in the United Nations andother intergovernmental organizations. IPIECA, together withthe oil industry’s other associations, provides the petroleumindustry with a means of involving itself in global environmentalissues. IPIECA is active in four main areas: oil spill response,global climate change, biodiversity and transportation.Oil spill responseThe IPIECA Oil Spill Working Group is the internationalforum for developing the industry’s view points and forsharing industry’s expertise on oil spill preparedness andresponse. The work of the group is helping thoseresponsible, in both government and industry, for:● establishing oil spill policy;● preparing contingency plans;● meeting the goals of the Convention on Oil PollutionPreparedness, Response and Cooperation (OPRC); and● protecting the marine environment.To introduce the oil industry’s expertise to a wideraudience, IPIECA and the International MaritimeOrganization (IMO) recognized the need to address theMr W. O’Neil, Secretary General, IMO, Mr F. Abda’oe, PresidentDirector, Pertamina and Dr D. F. Rijkels, Chairman, IPIECA, at thePilot IMO/Industry seminar on Contingency Planning for Oil SpillResponse, Jakarta, September 199158

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study TwelveIPIECA in the international communityissues with those who establish policy as well as those whoimplement it. To achieve this, the IMO/Industry Seminarprogramme was conceived in early 1991. The purpose of theseminars is to bring together, by geographic region, executivesfrom government and industry who are responsible forcontingency planning for oil spill response. The seminars aimto promote effective, long-term cooperation between industryand government, and to assist in the development of jointcontingency planning arrangements, as provided in the OPRCConvention, negotiated within IMO in 1990.Seven seminars have been held: for the ASEAN countries,for the Mediterranean, for Latin and Central America, for Eastand West Africa, for the Middle East Gulf Area, for theCaribbean Island states and for East Asia and the Pacific. Theseseminars have been developed:●●●●to encourage effective, long-term cooperation betweenindustry and government;as a catalyst for developing joint industry/governmentcontingency plans;as the beginning of an industry/government partnershipcapable of identifying, assembling and maintaining theresources needed for effective contingency planning;as the means by which government and industry resourcescan be most effectively deployed for the greatest long-termenvironmental benefit.IPIECA is now working in partnership with IMO towardsthe definition and implementation of a global follow-upstrategy. A meeting in South Africa in 1996 is being designed toprovide a template for a series of regional workshops on theneed for, and resourcing of, national contingency planningprocesses. The goal of this global strategy will be for all ‘at risk’developing countries’ coastal states to have tried and testedemergency plans in place by the year 2000. The end productwill be fully-executed national contingency plans involvinggovernment and industry.To support these programmes, IPIECA is publishing a seriesof technical reports which currently include guidelines forcontingency planning and the impact of oil spills on differenttypes of habitats (see box on page 60). These reports are widelydistributed to industry, government and academia in bothdeveloped and developing countries, and are increasingly cited askey references in the academic literature.IPIECA has also produced, and published jointly with IMO, avideo Working Together—Effective Oil Spill Contingency Planning.largespillmediumspillsmallspillTieroneThe tiered response to oil spills—a key element in contingency planningthat has been promoted in the IMO/IPIECA seminarsThis 30 minutes video captures the important messages of theseminars and highlights the theme of government/industrypartnership in the development of oil spill contingency plans.Available in English, Spanish, French and Chinese, the videois being distributed to a wide international audience includingIPIECA members and IMO member countries.WorkingTogetherIMOEffective Oil SpillContingency PlanningTiertwoproximity to operationsTierthreelocal vicinity remoteIPIECA/IMO video‘Working Together—Effective Oil SpillContingency Planning’.59

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study TwelveIPIECA in the international communityTHE IPIECA REPORT SERIESPublished to date:● Biological Impacts of Oil Pollution● Contingency Planning for Oil Spills on Water● Biological Impacts of Oil Pollution: Coral Reefs● Biological Impacts of Oil Pollution: Mangroves● Biological Impacts of Oil Pollution: Saltmarshes● Dispersants and their Role in Oil Spill Response● Sensitivity Mapping for Oil Spill Response● Guidelines for the Management of Oil Spill Exercises● Biological Impacts of Oil Pollution: Rocky ShoresReports on the following topics are in preparation:●●●Biological Impacts of Oil Pollution: Fish and FisheriesBiological Impacts of Oil Pollution: BirdsBiological Impacts of Oil Pollution: Sandy and Muddy ShoresIPIECAREPORTSERIESVOLUME ONEGUIDELINES ONBIOLOGICAL IMPACTSOF OIL POLLUTIONIPIECAREPORTSERIESVOLUME THREEInternational Petroleum Industry Environmental Conservation A sociationIPIECAREPORTSERIESVOLUME TWOBIOLOGICAL IMPACTSOF OIL POLLUTION:CORAL REEFSIPIECAREPORTSERIESVOLUME FIVEA GUIDE TOCONTINGENCY PLANNINGFOR OIL SPILLS ON WATERInternational Petroleum Industry Environmental Conservation A sociationIPIECAREPORTSERIESVOLUME FOURBIOLOGICAL IMPACTSOF OIL POLLUTION:MANGROVESInternational Petroleum Industry Environmental Conservation A sociationDISPERSANTS ANDTHEIR ROLE IN OILSPILL RESPONSEInternational Petroleum Industry Environmental Conservation A sociationIPIECAREPORTSERIESVOLUME SIXBIOLOGICAL IMPACTSOF OIL POLLUTION:SALTMARSHESInternational Petroleum Industry Environmental Conservation A sociationInternational Petroleum Industry Environmental Conservation A sociationGlobal climate changeThe potential significance of global climate change to thepetroleum industry was marked by the formation of theIPIECA Global Climate Change Working Group in 1988.The Working Group assists members in their efforts tounderstand scientific, technical and socio-economic aspects ofclimate change, coordinates support for education and research,and represents the petroleum industry in United Nationsdeliberations to assess and respond to global climate change.The Working Group began by contributing to theassessment carried out by the Intergovernmental Panel onClimate Change (IPCC). Liaising with these UN-drivenprocesses remains an important activity, particularly since thesigning of the Framework Convention on Climate Change.The Working Group identifies opportunities for industryto contribute to discussions of climate change, and createsforums to share views with key players from industry,academia and governments. IPIECA has sponsored severalexpert workshops and symposia on scientific, technical andsocio-economic aspects of climate change. These involvedevelopment of input from IPIECA members and exchangesbetween experts from industry and those involved ininternational analysis and policy making. The WorkingGroup also sponsors briefings on developments in globalclimate change for regional groups from industry, academiaand governments at IPIECA Meetings. Through suchinteractions IPIECA helps its members understand andcontribute to the ongoing analysis of climate change, andoptions to respond to the threat of climate change.The joint UNEP/IPIECA publication Climate Change andEnergy Efficiency in Industry (1991) translates the petroleumindustry’s experience in energy efficiency into terms meaningfulDelegates from the Lisbon Experts Workshop on Socio-economic Assessmentof Climate change (1993)60

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… Case Study TwelveIPIECA in the international community65 00'64 50'64 40'32 30'BermudaLandShallow reefal areasReef crests20m isobathDive sitesProtected areas32 30'32 20'32 20'WORLD CONSERVATIONMONITORING CENTRE0 5 10km65 00'64 50'64 40'Two of the many IPIECA publications relating to global climate changeto small and medium-sized businesses outside the energy sector.This and the other publications are one expression of theindustry’s attention to climate change and its commitment topursuing the ‘no regrets’ options which have the potential tomitigate any man-made enhanced greenhouse effect.BiodiversityThe oil industry recognises the importance of environmentaland biodiversity protection and the potential impact of itsactivities on biological systems. For this reason, IPIECA isinvolved in the Biodiversity Convention process, seeking toidentify how best to contribute and make available theexpertise of the oil industry.In this context, IPIECA is involved in a partnership withthe World Conservation Monitoring Centre (WCMC).WCMC was founded jointly by UNEP, the WorldConservation Union (IUCN) and the World Wide Fund forNature (WWF) to establish a global centre as a repository ofecological data. WCMC’s mission is to support conservationand sustainable development by providing geographicallyreferenced information on the world’s biological diversity.The WCMC/IPIECA project, initiated in 1990 by BP,aims to make the huge quantity of data held by WCMC easilyaccessible to an international audience. The outcome was thedevelopment of a Geographic Information System—theBiodiversity Map Library. This is a global database whichallows easy access to ecosystem conservation data, and createsand prints out maps displaying the data as required.The Biodiversity Map Library includes data on tropicalExample from WCMC’s Biodiversity Map Libraryforests, mangroves, coral reefs, wetlands, marine mammals,sea turtles, protected areas, vegetation cover and ecosystems.The system is designed to provide environment planners anddecision makers with geographically-referenced informationuseful for their work. It has many potential uses, particularlyfor risk assessment, strategic planning, land use studies andemergency response.TransportationThe management of transport-related emissions is a growingpreoccupation in many of the rapidly expanding cities aroundthe world. The industry has been closely associated with theevolution of auto emission control legislation during the past20 years, especially in North America and Europe. Theseexperiences were captured in an issue paper published in 1993by IPIECA, The Contribution of Automotive Transport Options tothe Management of Air Quality in the Developing Economies.This was the first contribution to the science technology andpolicy debate from the international oil industry.IPIECA is now preparing to extend its contribution. Afirst step will be the preparation of a report series throughwhich to share its in-depth experience of all aspects of themanagement of automotive emissions. The second step willbe to organize communication fora in the many regions ofthe world now facing the challenge of automotive emissionsmanagement for the first time. This will enable the benefit ofbest practices to be shared in ways most appropriate tocountries’ particular circumstances.61

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGA Guide to Resources▼This publication is the result of a partnership.Individual oil companies have provided the casehistories and much background material, IPIECA hascatalysed and facilitated the production of thepublication, and the United Nations EnvironmentProgramme has provided a broad internationalperspective on environmental issues and on theimportance of partnership in general.PeoplePublication Task Force members consisted of:Jacqueline Aloisi de Larderel (UNEP IE)Nancy Bennet (UNEP IE)Richard Feil (BP)Randy Gossen (Canadian Occidental)John Lemlin (IPIECA)Jean Marvillet (Total)Sophie Mounier (Project Manager, IPIECA)Jane Nelson (Prince of Wales Business Leaders Forum)Gerry Ungerleider (Task Force Chairman, Exxon)Koos Visser (Shell)Radzuan Yusof (Petronas)The publication has also been reviewed by theIPIECA membership and UNEP selected partners.A very special thanks should be given to all thoseinvolved in the preparation of the case studies.Thanks should also be given to Diane Edmensonand Charlotte Grezo of IPIECA for their input.OrganizationsIPIECAThe International Petroleum Industry Environmental ConservationAssociation has special responsibilities for global environmental issuesrelated to the petroleum industry. It was founded in 1974, followingthe establishment of the United Nations Environment Programme(UNEP) at the United Nations Conference on the HumanEnvironment, held in Stockholm two years earlier.UNEP is responsible for coordinating the United Nation’s systemas directed by the UN Economic and Social Council (ECOSOC).IPIECA is the petroleum industry’s principal channel of communicationwith the United Nations, having been granted ECOSOC Category IINon-Governmental Organization (NGO) consultative status.IPlECA’s programme takes full account of internationaldevelopments within the environment field. This includes developmentswithin the United Nations, within the newly created Commission onSustainable Development and within the United Nations EnvironmentProgramme (UNEP), specifically within the UNEP Industry andEnvironment Programme Activity Centre in Paris. The growingimportance to industry of other UN agencies is also recognized.UNEPUNEP’s Industry and Environment Centre in Paris was established in1975 to bring industry, governments and non-governmentalorganizations together to work towards environmentally-sound forms ofindustrial development. This is done by encouraging the incorporationof environmental criteria in industrial development; formulating andfacilitating the implementation of principles and procedures to protectthe environment; promoting the use of low- and non-wastetechnologies; and stimulating the worldwide exchange of informationand experience on environmentally-sound forms of industrialdevelopment. The Centre has developed a programme on Awarenessand Preparedness for Emergencies at Local Level (APELL) to preventand to respond to technological accidents, and a programme to promoteworldwide Cleaner Production.62

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… A Guide to ResourcesIPIECA MembersBibliographyEnterprise MembersAmocoSaudi AramcoAtlantic Richfield Co (ARCO)BHP Petroleum Pty LtdBPCaltex Petroleum CorporationCanadian Occidental Petroleum LtdChevron CorporationConoco Inc.Elf AquitaineENI SpAAssociation MembersAmerican Petroleum Institute (API)Exxon CorporationMaersk Olie og GasMobil Oil CorporationPertaminaPDVSAPetronasShell InternationalStatoilTexacoTotalUnocal CorporationPartnershipsStrategies for Today’s Environmental Partnership API 1994WICE Report on Technology Partnerships WICE 1994Improving Policy Cooperation Between Government and IndustryWICE 1994Partnerships for Sustainable Development—the Role of Businessand Industry UNEP IE, Prince of Wales Business LeadersForum and the Tufts University of the United States, 1995Environmental ManagementCAPP Environmental Code of Practice CAPP 1990Oil Industry Operating Guidelines for Tropical Rain ForestsE&P Forum 1991API Guiding Environmental Principles and ManagementPractices API 1993Asistencia Recíproca Petrolera Empresarial Latinoamericana(ARPEL)Australian Institute of Petroleum (AIP)Canadian Association of Petroleum Producers (CAPP)Canadian Petroleum Products Institute (CPPI)CONCAWEEuropean Petroleum Industry Association (EUROPIA)GAOCMAOInstitut Français du Pétrole (IFP)Oil Industry International Exploration and ProductionForum (E&P Forum)Oil Companies International Marine Forum (OCIMF)Petroleum Association of Japan (PAJ)South African Oil Industry Environment CommitteeGuidelines for Oil and Gas Exploration in Mangrove AreasE&P Forum/IUCN 1993Guidelines for Oil and Gas Exploration in Arctic and SubarcticOnshore Regions E&P Forum/IUCN 1993Guidelines for Conducting Environmental Audits for OnshorePetroleum Operations ARPEL 1993A Guide for the Environmental Impact Assessment ProcessARPEL 1993Environmental Performance Indicators, Methods for MeasuringPollution Prevention API 1994Guidelines for the Development and Application of Health, Safetyand Environmental Management Systems E&P Forum 1994Petroleum Industry Environmental Performance, third AnnualReport, API 1995Environmental Guiding Principles E&P Forum and EUROPIAAIP Codes and Practice and Guidelines Series AIP63

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… A Guide to ResourcesOil SpillEmergency Planning Guidance Notes: Content of EmergencyPlans, Planning for Mutual Aid CONCAWE 1988Evaluation of Restoration Alternatives for Natural ResourcesInjured by Oil Spills API 1991Guidelines on Biological Impacts of Oil Pollution IPIECA 1991A Guide to Contingency Planning for Oil Spills on WaterIPIECA 1991IPIECA Biological Impacts of Oil Pollution: Coral Reefs (1992),Mangroves (1993), Saltmarshes (1994)Dispersants and Their Role in Oil Spill Response IPIECA 1993Performance of Oil Industry Cross-Country Pipelines in WesternEurope—Statistical Summary of Reported SpillagesCONCAWE 1993Oil Spill Response in Freshwater Environment API 1993Climate ChangeGlobal Climate Change—A Petroleum Industry PerspectiveIPIECA 1991Climate Change and Energy Efficiency in IndustryIPIECA/UNEP 1991Experts’ Workshop on Socio-Economic Assessment of ClimateChange—Summary record IPIECA 1993Experts Workshop on Critical Issues in the Science of Climate ChangeIPIECA 1994Automotive fuels and emissionsDiesel Fuel Quality and its Relationship With Emissions fromDiesel Engines CONCAWE 1987Vehicle Emissions Inspection and Maintenance ProgramImprovement Strategies API 1990The Contribution of Automotive Transport Options to theManagement of Air Quality in the Developing EconomiesIPIECA 1993Gasoline Vapor Exposure Assessment in Service Stations API 1993Fuelling a Cleaner Environment ‘The Challenge and theCommitment’ APIAir protectionNO xEmissions from the Petroleum Industry Operations API 1979Measured Data on NO xEmissions in European RefineriesCONCAWE 1986Environmental Management Practices in Oil Refineries andTerminals UNEP IE 1987Environmental Management of Refineries and TerminalsIPIECA 1987Volatile Organic Compound Emissions in Western Europe:Control Options and their Cost-Effectiveness for Gasoline Vehicles,Distribution and Refining CONCAWE 1987Sulphur Dioxide Emissions from Oil Refineries and Combustion ofOil Products in Western Europe CONCAWE 1992The Environmental Benefits and Cost of Reducing Sulphur inGas Oils CONCAWE 1992The European Environmental and Refining Implications of ReducingSulphur Content of Marine Bunker Fuels CONCAWE 1993A Guideline for Control of Gaseous Emissions from RefineriesARPEL 1993Atmospheric Emissions from the Offshore Oil and Gas Industry inWestern Europe E&P Forum 1994Management of Air Quality in the Developing Economies APIDevelopment of Fugitive Emission Factors and Emission Profilesfor Petroleum Marketing Terminal API 1993Global Emissions of Carbon Dioxide from Petroleum SourcesAPI 1991Pollution preventionOil Refineries Waste Survey—Disposal Methods, Quantitiesand Costs CONCAWE 1989The Generation and Management of Waste and SecondaryMaterials in the Petroleum Refining Industry API 1991Waste Minimization in the Petroleum Industry: a Compendium ofPractices API 1991Safety Guidelines for Construction, Operation and Maintenance ofPipelines CAPP 199164

TECHNOLOGY COOPERATION AND CAPACITY BUILDING… A Guide to ResourcesExploration and Production Waste Management GuidelinesE&P Forum 1993This bibliography includes publications from theorganizations listed below:Environmental Design Considerations for Petroleum RefiningProcessing Units API 1993Industry Experience with Pollution Prevention ProgramsAPI 1993Guidelines for the Management of Petroleum Refinery SolidWastes ARPEL 1993Guidelines for Control and Mitigation of Environmental Effects ofDeforestation and Erosion ARPEL 1993Safety Guide for Terminals Handling Ships Carrying LiquefiedGases in Bulk OCIMF 1993Marine Terminal Survey Guidelines OCIMF 1994Clean Seas Guide for Oil Tankers OCIMF 1994Inspection Guidelines for Oil Tankers OCIMF 1994AIP Codes and Practice and Guidelines Series AIPWater and soil protectionAIPAPIARPELCAPPCONCAWEE&P ForumEUROPIAIUCNOCIMFWICEAustralian Institute of PetroleumAmerican Petroleum InstituteAsistencia Recíproca Petrolera EmpresarialLatinoamericanaCanadian Association of Petroleum ProducersThe Oil Companies’ European Organization forEnvironment, Health and SafetyOil Industry International Exploration andProduction ForumEuropean Petroleum Industry AssociationWorld Conservation UnionOil Companies International Marine Forum—now the World Business Council forSustainable Development (WBCSD)A Field Guide on Reduction and Disposal of Waste from Refineriesand Marketing Installations CONCAWE 1990Contacts can be facilitated through the IPIECA secretariat.European Soil and Groundwater Legislation: Implications for theOil Refining Industry CONCAWE 1990A Guide for Disposal and Treatment of Produced WaterARPEL 1993Evaluation of Technologies for the Treatment of PetroleumProduct Marketing Terminal Wastewater API 1993Trends in Oil Discharged with Aqueous Effluents from OilRefineries in Western Europe CONCAWE 1994Guidelines for the Assessment and Management of ContaminatedSites AIP 1994AIP Codes and Practice and Guidelines Series AIP65

IPIECAInternational Petroleum Industry Environmental Conservation Association5th Floor 209–215 Blackfriars Road London SE1 8NL United KingdomTel: +44 (0)20 7633 2388 Fax: +44 (0)20 7633 2389E-mail: info@ipieca.org Internet: www.ipieca.orgUNEPUnited Nations Environment Programme Industry and Environment Office39–43 Quai André Citröen 75739 Paris Cedex 15 FranceTel: +33 (1) 44 37 14 50 Fax: +33 (1) 44 37 14 74 Telex: 204 997 FE-mail: unepie@unep.fr

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